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Imperfect Monitoring and Impermanent Reputations Export

Econometrica, Vol. 72, No. 2. (2004), pp. 407-432.

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We study the long-run sustainability of reputations in games with imperfect public monitoring. It is impossible to maintain a permanent reputation for playing a strategy that does not play an equilibrium of the game without uncertainty about types. Thus, a player cannot indefinitely sustain a reputation for noncredible behavior in the presence of imperfect monitoring.


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