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Kreps (1990) - Corporate Culture And Economic Theory (view source)
Revision as of 16:14, 28 April 2010
, 16:14, 28 April 2010no edit summary
==Short Lived Agents==
The folk theorem implicitly requires that agents are long lived - the need a memory of whether anyone ever defected in the past to choose their strategy. Kreps's innovation was to create a long lived entity that is seperate from the identity of the individual players. Essentially the seller can buy a name for a price p, and if he does not abuse the name he can then, at the end of the period sell the name for the same price.