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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

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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    2. Sofia Moroni, 2019. "Existence of trembling hand perfect and sequential equilibrium in games with stochastic timing of moves," Working Paper 6757, Department of Economics, University of Pittsburgh.
    3. Balbus, Lukasz & Dziewulski, Pawel & Reffett, Kevin & Wozny, Lukasz, 2022. "Markov distributional equilibrium dynamics in games with complementarities and no aggregate risk," Theoretical Economics, Econometric Society, vol. 17(2), May.
    4. Wei He, 2022. "Discontinuous stochastic games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(4), pages 827-858, June.
    5. Kimmo Berg, 2016. "Elementary Subpaths in Discounted Stochastic Games," Dynamic Games and Applications, Springer, vol. 6(3), pages 304-323, September.
    6. Sofia Moroni, 2020. "Existence of Trembling hand perfect and sequential equilibrium in Stochastic Games," Working Paper 6837, Department of Economics, University of Pittsburgh.

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