Stochastic bequest games

Łukasz Balbus, Anna Jaśkiewicz and Andrzej Nowak

Games and Economic Behavior, 2015, vol. 90, issue C, 247-256

Abstract: In this paper, we prove the existence of a stationary Markov perfect equilibrium for a stochastic version of the bequest game. A novel feature in our approach is the fact that the transition probability need not be non-atomic and therefore, the deterministic production function is not excluded from consideration. Moreover, in addition to the common expected utility we also deal with a utility that takes into account an attitude of the generation towards risk.

Keywords: Stochastic game; Bequest game; Stationary Markov perfect equilibrium; Entropic risk measure (search for similar items in EconPapers)
JEL-codes: C62 C73 D91 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:90:y:2015:i:c:p:247-256

DOI: 10.1016/j.geb.2015.02.017

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