This paper provides a folk theorem for two-player repeated games in which players have different discount factors. In such games, players can mutually benefit from trading payoffs across time. Hence, the set of feasible repeated game payoffs is typically larger than the convex hull of the...

A (TU) cooperative game is extendable if every core allocation of each subgame can be extended to a core allocation of the game. It is strongly extendable if any minimal vector in the upper core of any of its subgames can be extended to a core allocation. We prove that strong extendability is...

We present a model of anonymous collective bargaining where individuals' preferences and information may be significantly interdependent. We show that the bargaining outcome becomes independent of individuals' preferences and information as the bargaining group increases in size. As a corollary,...

We show that any correlation device with rational coefficients can be generated by a mechanism where each player sends a private message to a mediator who in turn makes a public deterministic announcement. Moreover, the mechanism suggested is immunized against individual deviations.