A Discounted Stochastic Game with No Stationary Equilibria: The Case of Absolutely Continuous Transitions
AbstractWe present a discounted stochastic game with a continuum of states, finitely many players and actions, such that although all transitions are absolutely continuous w.r.t. a fixed measure, it possesses no stationary equilibria. This absolute continuity condition has been assumed in many equilibrium existence results, and the game presented here complements a recent example of ours of a game with no stationary equilibria but which possess deterministic transitions. We also show that if one allows for compact action spaces, even games with state-independent transitions need not possess stationary equilibria.
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Bibliographic InfoPaper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp612.
Length: 21 pages
Date of creation: Jun 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-GTH-2012-07-08 (Game Theory)
- NEP-HPE-2012-07-08 (History & Philosophy of Economics)
- NEP-MIC-2012-07-08 (Microeconomics)
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