A folk theorem for stochastic games
Article Abstract:
Dynamic strategic interaction that has been examined in terms of repeated game theory has wrongly assumed the absence of variable changes. In such cases, a stochastic game is better applied due to state variable representation of the game environment. Games covering completely communicating stochastic observations up to games characterized by deterministic capital accumulation have incentives conditioned by the discount factor's proximity to 1.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Collusion, discounting and dynamic games
Article Abstract:
The relationship between market player patience in dynamic games and the achievement of collusive outcomes is examined. Such a relationship breaks down under dynamic game conditions, where impatient players sustain collusion while patient players do not. However, declining worst payoff games allow the achievement of equilibrium outcomes for both players with a discount factor and for players with higher discount factors.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
How different can strategic models be?
Article Abstract:
The implications of strategic behavior sometimes differ from outcomes derived within comparative frameworks. A common-property resource model is used to analyze these differences. Game-theoretic analogs, which are represented by Markov Perfect Equilibria, are compared with Markovian optimal solutions. Situations in which dynamic behavior is erratic are also analyzed.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Run-proof banking without suspension or deposit insurance. Evolution, coordination, and banking panics. Bank runs: liquidity costs and investment distortions
- Abstracts: On the relationship between discounting and complicated behavior in dynamic optimization models. Stability and complex dynamics in a discrete tatonnement model
- Abstracts: A Critique of the Transatlantic Consensus on Rising Income Inequality. Competitive versus comparative advantage
- Abstracts: A logical framework for coalitional effectivity in dynamic procedures. Games in dynamic-epistemic logic
- Abstracts: All in the family: nesting symmetric and asymmetric GARCH models. No news is good news: an asymmetric model of changing volatility in stock returns