MANAGER, WORKER, RENTIER AND GOVERNMENT: MARKOV AND NON-MARKOVIAN PLAY

Romar Correa

International Game Theory Review (IGTR), 2006, vol. 08, issue 03, 429-436

Abstract: We decompose the representative agent into her manager, worker and rentier selves. The criterion is the information set of each of the 'incarnations' at every stage of a repeated game. The rentier's information set includes anticipating information while the information set of the other agents is feedback. The equilibrium that results is, therefore, not subgame perfect. Enter the government that produces a good that complements the existing good. It is financed by the issue of money that substitutes for the asset. The enlargement of the state space of the game induces cooperation between the agents.

Keywords: Markov and non-Markovian equilibrium; coordination games; JEL Classification Number: C73; JEL Classification Number: E13 (search for similar items in EconPapers)
JEL-codes: B4 C0 C6 C7 D5 D7 M2 (search for similar items in EconPapers)
Date: 2006
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DOI: 10.1142/S0219198906001004

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