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Elementary Subpaths in Discounted Stochastic Games

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  • Kimmo Berg

    () (Aalto University School of Science)

Abstract

Abstract This paper examines the subgame-perfect equilibria in discounted stochastic games with finite state and action spaces. The fixed-point characterization of equilibria is generalized to unobservable mixed strategies. It is also shown that the pure-strategy equilibria consist of elementary subpaths, which are repeating fragments that give the acceptable action plans in the game. The developed methodology offers a novel way of computing and analyzing equilibrium strategies that need not be stationary nor Markovian.

Suggested Citation

  • Kimmo Berg, 2016. "Elementary Subpaths in Discounted Stochastic Games," Dynamic Games and Applications, Springer, vol. 6(3), pages 304-323, September.
  • Handle: RePEc:spr:dyngam:v:6:y:2016:i:3:d:10.1007_s13235-015-0151-5
    DOI: 10.1007/s13235-015-0151-5
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    References listed on IDEAS

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