Private Signals Key to Perfect Coordination in Repeated Games
Players in repeated games can coordinate their actions using public signals, but without them, a coordination problem arises. The study focuses on private monitoring and makes three key observations. First, specific private signaling technologies can lead to non-static Nash behavior in certain games. Second, in a particular game, equilibria with private monitoring involve only static Nash equilibria, unlike with public monitoring. Lastly, for finite action games, there are private monitoring technologies that support a Nash reversion infinite horizon folk theorem.