This paper studies contagious equilibrium in infinitely repeated matching games. The innovation is to identify a key statistic of contagious punishment that, used together with a recursive formulation, generates tractable closed-form expressions for continuation payoffs, off equilibrium. This allows a transparent characterization of the dynamic incentives created by contagious punishment schemes.
Camera, Gabriele, and Alessandro Gioffré. "A tractable analysis of contagious equilibria." Journal of Mathematical Economics 50 (2014): 290-300. doi: 10.1016/j.jmateco.2013.07.003
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