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A Theory of Regular Markov Perfect Equilibria in Dynamic Stochastic Games: Genericity, Stability, and Purification

  • Doraszelski, Ulrich
  • Escobar, Juan

This paper develops a theory of regular Markov perfect equilibria in dynamic stochastic games. We show that almost all dynamic stochastic games have a finite number of locally isolated Markov perfect equilibria that are all regular. These equilibria are essential and strongly stable. Moreover, they all admit purification.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6805.

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Date of creation: Apr 2008
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Handle: RePEc:cpr:ceprdp:6805
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