Room 327

Public value of private signals

Dietmar Berwanger

LSV, CNRS, Paris-Saclay, France

One insight from the theory of repeated games is that oordination relies on common information about histories. In games with private monitoring,
where players receive a private, noisy observation about the outcome of the stage game in every period, coordination tends to become complicated as time proceeds.

We propose a construction that separates the observations of players into a public and a private signal. Public signals can be monitored with perfect
recall, whereas the recall structure for private signals may be restricted. Then, a game is finite-state solvable precisely if private signals can be monitored through a finite recall structure. Under this perspective, we identify games with incomplete and imperfect information where distributed winning strategies can be synthesised effectively.