Codes of conduct, private information and repeated games

Abstract

We examine self-referential games in which there is a chance of understanding an opponent’s intentions. Even when this source of information is weak, we are able to prove a folk-like theorem for repeated self-referential games with private monitoring. Our main focus is on the interaction of two sources of information about opponents’ play: direct observation of the opponent’s intentions, and indirect observation of the opponent’s play in a repeated setting.