On Myopic Equilibria in Dynamic Games with Endogenous Discounting
AbstractThis paper derives an equilibrium for a competitive multi-stage game in which an agents'' current action influences his probability of survival into the next round of play. This is directly relevant in banking, where a banks'' current lending and pricing decisions determines its future probability of default. In technical terms, our innovation is to consider a multi-stage game with endogenous discounting. An equilibrium for such a multi-stage game with endogenous discounting has not been derived before in the literature.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 06/302.
Date of creation: 01 Dec 2006
Date of revision:
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Other versions of this item:
- Wilko Bolt & Alexander Tieman, 2005. "On Myopic Equilibria in Dynamic Games with Endogenous Discounting," DNB Working Papers, Netherlands Central Bank, Research Department 070, Netherlands Central Bank, Research Department.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-HPE-2013-02-16 (History & Philosophy of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics.
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