Finite State Dynamic Games with Asymmetric Information: A Framework for Applied Work

Chaim Fershtman () and Ariel Pakes

No 7323, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: With applied work in mind, we define an equilibrium notion for dynamic games with asymmetric information which does not require a specification for players' beliefs about their opponent types. This enables us to define equilibrium conditions which, at least in principal, are testable and can be computed using a simple reinforcement learning algorithm. We conclude with an example that endogenizes the maintenance decisions for electricity generators in a dynamic game among electric utilities in which the costs states of the generators are private information.

Keywords: Applied markov equilibrium; Dynamic games; Dynamic oligopoly (search for similar items in EconPapers)
JEL-codes: C63 C73 L13 (search for similar items in EconPapers)
Date: 2009-06
New Economics Papers: this item is included in nep-cta and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://cepr.org/publications/DP7323 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Finite State Dynamic Games with Asymmetric Information: A Framework for Applied Work (2009)
Working Paper: Finite State Dynamic Games with Asymmetric Information: A Framework for Applied Work (2008)
Working Paper: Finite State Dynamic Games with Asymmetric Information: A Framework for Applied Work (2005)
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:cpr:ceprdp:7323

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP7323

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().