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Strategic Complementarities in Multi-Stage Games

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  • Vives, Xavier

Abstract

We provide sufficient conditions in finite-horizon multi-stage games for the value function of each player, associated to extremal Markov perfect equilibria, to display strategic complementarities and for the contemporaneous equilibrium to be increasing in the state variables.

Suggested Citation

  • Vives, Xavier, 2006. "Strategic Complementarities in Multi-Stage Games," CEPR Discussion Papers 5583, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:5583
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    adjustment costs; learning curve; Markov game; supermodularity; two-stage game;
    All these keywords.

    JEL classification:

    • 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

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