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Dynamic games with hidden actions and hidden states

Author

Listed:
  • Harold L. Cole
  • Narayana R. Kocherlakota

Abstract

We consider a class of dynamic games in which each player?s actions are unobservable to the other players and each player?s actions can influence a state variable that is unobservable to the other players. We develop an algorithm that solves for the subset of sequential equilibria in which equilibrium strategies depend on private information only through the privately observed state.

Suggested Citation

  • Harold L. Cole & Narayana R. Kocherlakota, . "Dynamic games with hidden actions and hidden states," Staff Report, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:254
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    References listed on IDEAS

    as
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    2. Atkeson, Andrew, 1991. "International Lending with Moral Hazard and Risk of Repudiation," Econometrica, Econometric Society, vol. 59(4), pages 1069-1089, July.
    3. Harold L. Cole & Narayana R. Kocherlakota, 1999. "Efficient allocations with hidden income and hidden storage," Staff Report, Federal Reserve Bank of Minneapolis.
    4. Harold L. Cole & Narayana R. Kocherlakota, 2001. "Efficient Allocations with Hidden Income and Hidden Storage," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(3), pages 523-542.
    5. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
    6. Ana Fernandes & Christopher Phelan, . "A recursive formulation for repeated agency with history dependence," Staff Report, Federal Reserve Bank of Minneapolis.
    7. Green, Edward J & Porter, Robert H, 1984. "Noncooperative Collusion under Imperfect Price Information," Econometrica, Econometric Society, vol. 52(1), pages 87-100, January.
    8. Fernandes, Ana & Phelan, Christopher, 2000. "A Recursive Formulation for Repeated Agency with History Dependence," Journal of Economic Theory, Elsevier, vol. 91(2), pages 223-247, April.
    9. Stephen E. Spear & Sanjay Srivastava, 1987. "On Repeated Moral Hazard with Discounting," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(4), pages 599-617.
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    Cited by:

    1. Ana Fernandes & Christopher Phelan, . "A recursive formulation for repeated agency with history dependence," Staff Report, Federal Reserve Bank of Minneapolis.

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    Keywords

    Game theory;

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