Common Learning and Cooperation in Repeated Games

Common Learning and Cooperation in Repeated Games

By
Takuo Sugaya, Yuichi Yamamoto
Theoretical Economics. July
2020, Vol. 15, Issue 3, Pages 1175–1219

We study repeated games in which players learn the unknown state of the world by observing a sequence of noisy private signals. We find that for generic signal distributions, the folk theorem obtains using ex post equilibria. In our equilibria, players commonly arn the state, that is, the state becomes asymptotic common knowledge.