SOCIAL-LEARNING IN RECURRING GAMES

In a recurring game, a stage game is played sequentially by different groups of players. Each group receives publicly available information about the play of earlier groups. Not knowing the population distribut ion of player types (representing individual preferences and behavior) , society members start with a prior probability distribution over a s et of possible type-distributions. Late groups update their beliefs by considering the public information regarding the play of earlier grou ps. We study the limit beliefs and play of late groups and the relatio nships to the true (realized) type-distribution and equilibria of the true Bayesian stage game. (C) 1997 Academic Press.