This paper studies the maximum level of cooperation that can be sustained in perfect Bayesian equilibrium in repeated games with network monitoring, where players observe each other's actions either perfectly or not at all. The foundational result is that the maximum level of cooperation can be...

The paper examines the behaviour of "evolutionary" models with epsilon-noise like those which have been used recently to discuss the evolution of social conventions. The paper is built around two main observations: that the "long run stochastic stability" of a convention is related to the speed...

This paper considers the repeated prisoner's dilemma in a large-population random-matching setting where players are unable to recognize their opponents. Despite the informational restrictions, cooperation is still a sequential equilibrium supported by 'contagious' punishments. The equilibrium...