We study two-player discounted repeated games in which one player cannot monitor the other unless he pays a fixed amount. It is well known that in such a model the folk theorem holds when the monitoring cost is on the order of magnitude of the stage payoff. We analyze high frequency games in...

In (Viossat, 2006, "The replicator dynamics does not lead to correlated equilibria", forthcoming in Games and Economic Behavior), it was shown that the replicator dynamics may eliminate all pure strategies used in correlated equilibrium, so that only strategies that do not take part in any...