REPUTATION AND COMMITMENT IN 2-PERSON REPEATED GAMES WITHOUT DISCOUNTING

Two-person repeated games with no discounting are considered where the re is uncertainty about the type of the players. If there is a possibi lity that a player is an automaton committed to a particular pure or m ixed stage-game action, then this provides a lower bound on the Nash e quilibrium payoffs to a normal type of this player. The lower bound is the best available and is robust to the existence of other types. The results are extended to the case of two-sided uncertainty. This work extends Schmidt (1993) who analyzed the restricted class of conflictin g interest games.