Stochastic games with endogenous transitions
We introduce a stochastic game in which transition probabilities depend on the history of the play, i.e., the players’ past action choices. To solve this new type of game under the limiting average reward criterion, we determine the set of jointly-convergent pure-strategy rewards which can be supported by equilibria involving threats. We examine the following setting for motivational and expository purposes. Each period, two agents exploiting a fishery choose between catching with restraint or without. The fish stock is in either of two states, High or Low, and in the latter each action pair yields lower payoffs. Restraint is harmless to the fish, but it is a dominated strategy in each stage game. Absence of restraint damages the resource, i.e., the less restraint the agents show, the higher the probabilities that Low occurs at the next stage of the play. This state may even become ‘absorbing’, i.e., transitions to High become impossible.
|Date of creation:||25 Nov 2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.uni-marburg.de/fb19/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bulte, Erwin H., 2003.
"Open access harvesting of wildlife: the poaching pit and conservation of endangered species,"
Blackwell, vol. 28(1), pages 27-37, January.
- Bulte, Erwin H., 2003. "Open access harvesting of wildlife: the poaching pit and conservation of endangered species," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 28(1), January.
- Bulte, E.H., 2003. "Open access harvesting of wildlife : The poaching pit and conservation of endangered species," Other publications TiSEM 8c68c5f0-e72a-49bb-a44c-c, Tilburg University, School of Economics and Management.
- Reinoud Joosten & Thomas Brenner & Ulrich Witt, 2003. "Games with frequency-dependent stage payoffs," International Journal of Game Theory, Springer, vol. 31(4), pages 609-620, 09.
- FORGES, Françoise, .
"An approach to communication equilibria,"
CORE Discussion Papers RP
-721, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Joosten Reinoud & Peters Hans & Thuijsman Frank, 1995. "Unlearning by Not Doing: Repeated Games with Vanishing Actions," Games and Economic Behavior, Elsevier, vol. 9(1), pages 1-7, April.
- HART, Sergiu, . "Nonzerosum two-person repeated games with incomplete information," CORE Discussion Papers RP -636, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- AMIR, Rabah, 2001. "Stochastic games in economics and related fields: an overview," CORE Discussion Papers 2001060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
When requesting a correction, please mention this item's handle: RePEc:esi:evopap:2010-24. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christoph Mengs)
If references are entirely missing, you can add them using this form.