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A Computational Approach to Proving Uniqueness in Dynamic Games

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Author Info
Karl Schmedders
Ken Judd () (Hoover Institute Hoover Institution)

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Abstract

Dynamic games are used to analyze dynamic strategic interactions. While existence of equilibrium can often be proved by conventional methods, uniqueness is much more difficult to establish. If a game reduces to solving a system of polynomial equations, then one could use algorithms for finding all solutions to such systems to establish if equilibrium was unique. We study a common type of game where equilibrium can be analyzed as a sequence of small games and apply an all solutions algorithm to each such game

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Publisher Info
Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number 412.

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Date of creation: 11 Nov 2005
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Handle: RePEc:sce:scecf5:412

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Related research
Keywords: nash equilibrium; multivariate polynomials;

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C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques

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  1. Besanko, David & Doraszelski, Ulrich & Kryukov, Yaroslav & Satterthwaite, Mark, 2007. "Learning-by-Doing, Organizational Forgetting and Industry Dynamics," CEPR Discussion Papers 6160, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Borkovsky, RON N. & Doraszelski, Ulrich & Kryukov, Yaroslav, 2008. "A User's Guide to Solving Dynamic Stochastic Games Using the Homotopy Method," CEPR Discussion Papers 6733, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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