Symmetric Equilibria in Stochastic Timing Games

Jan-Henrik Steg ()

Papers from arXiv.org

Abstract: We construct subgame-perfect equilibria with mixed strategies for symmetric stochastic timing games with arbitrary strategic incentives. The strategies are qualitatively different for local first- or second-mover advantages, which we analyse in turn. When there is a local second-mover advantage, the players may conduct a war of attrition with stopping rates that we characterize in terms of the Snell envelope from the theory of optimal stopping. This is a very general result, but it provides a clear interpretation. When there is a local first-mover advantage, stopping typically results from preemption and is abrupt. Equilibria may differ in the degree of preemption, precisely when it is triggered or not. We develop an algorithm to characterize when preemption is inevitable and to construct corresponding payoff-maximal symmetric equilibria.

Date: 2015-07, Revised 2018-05
New Economics Papers: this item is included in nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://arxiv.org/pdf/1507.04797 Latest version (application/pdf)

Related works:
Working Paper: Symmetric equilibria in stochastic timing games (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1507.04797

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().