Noisy Stochastic Games
This paper establishes existence of a stationary Markov perfect equilibrium in general stochastic games with noiseâ€”a component of the state that is nonatomically distributed and not directly affected by the previous periodâ€™s state and actions. Noise may be simply a payoff-irrelevant public randomization device, delivering known results on existence of correlated equilibrium as a special case. More generally, noise can take the form of shocks that enter into playersâ€™ stage payoffs and the transition probability on states. The existence result is applied to a model of industry dynamics and to a model of dynamic electoral competition.
|Date of creation:||Feb 2012|
|Date of revision:|
|Contact details of provider:|| Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.|
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.:
- Harris, Christopher & Reny, Philip & Robson, Arthur, 1995. "The Existence of Subgame-Perfect Equilibrium in Continuous Games with Almost Perfect Information: A Case for Public Randomization," Econometrica, Econometric Society, vol. 63(3), pages 507-44, May.
- Andrzej Nowak, 2007. "On stochastic games in economics," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 66(3), pages 513-530, December.
- Horst, Ulrich, 2002.
"Stationary equilibria in discounted stochastic games with weakly interacting players,"
SFB 373 Discussion Papers
2002,77, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Horst, Ulrich, 2005. "Stationary equilibria in discounted stochastic games with weakly interacting players," Games and Economic Behavior, Elsevier, vol. 51(1), pages 83-108, April.
- Herings, P. Jean-Jacques & Peeters, Ronald J. A. P., 2004.
"Stationary equilibria in stochastic games: structure, selection, and computation,"
Journal of Economic Theory,
Elsevier, vol. 118(1), pages 32-60, September.
- Herings,P. Jean-Jacques & Peeters,Ronald J.A.P, 2000. "Stationary Equilibria in Stochastic Games: Structure, Selection, and Computation," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- James Bergin & Dan Bernhardt, 2006.
"Industry Dynamics with Stochastic Demand,"
1043, Queen's University, Department of Economics.
- repec:spr:compst:v:66:y:2007:i:3:p:513-530 is not listed on IDEAS
- Andrzej Nowak, 2003. "On a new class of nonzero-sum discounted stochastic games having stationary Nash equilibrium points," International Journal of Game Theory, Springer;Game Theory Society, vol. 32(1), pages 121-132, December.
- Bergin, James & Bernhardt, Dan, 1992.
"Anonymous sequential games with aggregate uncertainty,"
Journal of Mathematical Economics,
Elsevier, vol. 21(6), pages 543-562.
- James Bergin & Dan Bernhardt, 1989. "Anonymous Sequential Games with Aggregate Uncertainty," Working Papers 760, Queen's University, Department of Economics.
- Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:roc:rocher:570. 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: (Richard DiSalvo)
If references are entirely missing, you can add them using this form.