Decision Sciences
4 years ago

New research shows how players can strategically coordinate for efficient outcomes.

1 view
SSRN Electronic Journal
Repeated Coordination with Private Learning
Pathikrit Basu, Kalyan Chatterjee, Tetsuya Hoshino, Omer Tamuz

Paper Summary

Players in a repeated game can learn and coordinate their actions over time to achieve efficient payoffs. By using private signals and observing others' actions, players can eventually coordinate on the correct action, regardless of the discount factor. For high discount factors, players can also reach efficient payoffs in addition to coordination.

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