Weakly Belief-Free Equilibria in Repeated Games with Private Monitoring

Repeated games with imperfect private monitoring have a wide range of applications, but a complete characterization of all equilibria in this class of games has yet to be obtained. The existing literature has identified a relatively tractable subset of equilibria. The present paper introduces the notion of weakly belief-free equilibria for repeated games with imperfect private monitoring. This is a tractable class which subsumes, as a special case, a major part of the existing work (the belief-free equilibria), and it is shown that this class can outperform (in terms of efficiency) the equilibria identified by previous work. ∗e-mail: [email protected].