The Basic Structure of Repeated Games with Perfect Monitoring
George Joseph Mailath, Larry Samuelson · Oxford University Press eBooks · 2006
This chapter introduces the basic concepts of a stage game, repeated game with perfect monitoring, subgame-perfect equilibrium, and the one-shot deviation principle; introduces the use of automata to represent strategy profiles; and introduces the concepts of decomposability, enforceability, and self-generation. Readers can either proceed to the next chapter, or if particularly interested in games with public monitoring, proceed directly to Chapter 7.