Marginal Reputation: From i.i.d. to Markovian States

Extending Luo & Wolitzky (2024) to Persistent Markovian States: Belief-Robustness and the Cost of Persistence

Introduction
Original (i.i.d.)
Markovian Extension
Comparison
Deterrence Example
Author Review
Revision
Prompt History

Luo & Wolitzky (2024): "Marginal Reputation." MIT Department of Economics.

Revised Paper: Mathewson, K. with AI Collaborators (2026). "Extending Marginal Reputation to Persistent Markovian States" (PDF, 28 pages) · Response Letter

Initial Draft (v1): Original 5-hour draft (PDF, 26 pages)

Response to Daniel Luo's $500 challenge to extend the main result to Markovian states. Incorporates all 15 expert critique points.