A constructive study of Markov equilibria in stochastic games with strategic complementarities
Kevin Reffett and
Journal of Economic Theory, 2014, vol. 150, issue C, 815-840
We study a class of infinite horizon, discounted stochastic games with strategic complementarities. In our class of games, we prove the existence of a stationary Markov Nash equilibrium, as well as provide methods for constructing this least and greatest equilibrium via a simple successive approximation schemes. We also provide results on computable equilibrium comparative statics relative to ordered perturbations of the space of games. Under stronger assumptions, we prove the stationary Markov Nash equilibrium values form a complete lattice, with least and greatest equilibrium value functions being the uniform limit of approximations starting from pointwise lower and upper bounds.
Keywords: Markov equilibria; Stochastic games; Constructive methods (search for similar items in EconPapers)
JEL-codes: C62 C73 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:150:y:2014:i:c:p:815-840
Access Statistics for this article
Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell
More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().