SFB 303 Discussion Paper No. A - 136

Author: van Damme, Eric
Title: The Impossibility of Stable Renegotiation
Abstract: This note describes an example of a repeated game which has a unique renegotiation-proof equilibrium (Farrell(1983)) that however is not stable in the sense of Kohlberg and Mertens (1986). Hence, the requirements of renegotiation-proofness and stability may be mutually inconsistent.
Creation-Date: October 1987
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