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Markov Stationary Equilibria in Stochastic Supermodular Games with Imperfect Private and Public Information

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  • Łukasz Balbus
  • Kevin Reffett
  • Łukasz Woźny

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Abstract

We study a class of discounted, infinite horizon stochastic games with public and private signals and strategic complementarities. Using monotone operators defined on the function space of values and strategies (equipped with a product order), we prove existence of a stationary Markov–Nash equilibrium via constructive methods. In addition, we provide monotone comparative statics results for ordered perturbations of our space of games. We present examples from industrial organization literature and discuss possible extensions of our techniques for studying principal-agent models. Copyright The Author(s) 2013

Suggested Citation

  • Łukasz Balbus & Kevin Reffett & Łukasz Woźny, 2013. "Markov Stationary Equilibria in Stochastic Supermodular Games with Imperfect Private and Public Information," Dynamic Games and Applications, Springer, vol. 3(2), pages 187-206, June.
  • Handle: RePEc:spr:dyngam:v:3:y:2013:i:2:p:187-206
    DOI: 10.1007/s13235-012-0065-4
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    Cited by:

    1. Kimmo Berg, 2016. "Elementary Subpaths in Discounted Stochastic Games," Dynamic Games and Applications, Springer, vol. 6(3), pages 304-323, September.

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