IDEAS home Printed from https://ideas.repec.org/p/chf/rpseri/rp1045.html
   My bibliography  Save this paper

Finding All Pure-Strategy Equilibria in Static and Dynamic Games with Continuous Strategies

Author

Listed:
  • Kenneth L. JUDD

    (Stanford University)

  • Philipp RENNER

    (University of Zurich)

  • Karl SCHMEDDERS

    (Unviersity of Zurich and Swiss Finance Institute)

Abstract

Static and dynamic games are important tools for the analysis of strategic interactions among economic agents and have found many applications in economics. In many games equilibria can be described as solutions of polynomial equations. In this paper we describe state-of-the-art techniques for finding all solutions of polynomial systems of equations and illustrate these techniques by computing all equilibria of both static and dynamic games with continuous strategies. We compute the equilibrium manifold for a Bertrand pricing game in which the number of equilibria changes with the market size. Moreover, we apply these techniques to two stochastic dynamic games of industry competition and check for equilibrium uniqueness. Our examples show that the all-solution methods can be applied to a wide variety of policy-relevant models.

Suggested Citation

  • Kenneth L. JUDD & Philipp RENNER & Karl SCHMEDDERS, 2010. "Finding All Pure-Strategy Equilibria in Static and Dynamic Games with Continuous Strategies," Swiss Finance Institute Research Paper Series 10-45, Swiss Finance Institute.
    • Handle: RePEc:chf:rpseri:rp1045
    as

    Download full text from publisher

    File URL: http://ssrn.com/abstract=1703417
    Download Restriction: no
    File URL:
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Che-Lin Su, 2014. "Estimating discrete-choice games of incomplete information: Simple static examples," Quantitative Marketing and Economics (QME), Springer, vol. 12(2), pages 167-207, June.

    More about this item

    Keywords

    Polynomial equations; multiple equilibria; static games; dynamic games; Markov-perfect equilibria;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:chf:rpseri:rp1045. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ridima Mittal (email available below). General contact details of provider: https://edirc.repec.org/data/fameech.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.