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March 29, 2026Econometrica

Dynamic Incentives in Incompletely Specified Environments

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Authors

GCGabriel Carroll

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Overview

This framework explores incentives in varying game scenarios, revealing implications for equilibrium outcomes.

Key Points

  • The research aims to analyze how dynamic incentives function in uncertain game environments and their implications for equilibrium strategies.
  • Developed a model considering repeated interactions with unknown stage games.
  • Utilized ex post perfect equilibrium as a solution concept.
  • Evaluated scenarios with different player types: long-run and short-run players.
  • Analyzed the role of public randomization in determining incentive structures.
  • Identified maximum feasible gaps between rewards and punishments for long-run players.
  • Characterized equilibrium actions under perfect monitoring conditions.
  • Found that the approach fails when multiple long-run players are involved or without public randomization.

Cite This Study

Gabriel Carroll (2026) studied this question.

synapsesocial.com/papers/69c8c0b0de0f0f753b39b7fahttps://doi.org/10.3982/ecta23373
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