Folk theorems in overlapping generations games

Folk theorems in overlapping generations games (1992), Games and Economic Behavior 

This paper characterizes perfect folk theorems for repeated games with overlapping generations of finite-lived players. We prove two uniform folk theorems that admit arbitrarily long-lived players for a given discount factor; the result for n > 2 players requires a full-dimensional payoff space. Under no assumptions whatsoever, a nonuniform n-player folk theorem obtains in which the discount factor must covary with the players’ lifespans. Our focus on the overlap rather than the generation makes possible compact and explicit descriptions of all equilibria. We later synthesize our results in a more general setting with some finite and some infinite-lived players.