Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 8, 2015 erstellt
Beschreibung:
We study a class of infinite horizon stochastic games with uncountable number of states. We first characterize the set of all (nonstationary) short-term (Markovian) equilibrium values by developing a new Abreu, Pearce, and Stacchetti (1990) type procedure operating in function spaces. This (among others) proofs Markov Perfect Nash Equilibrium (MPNE) existence. Moreover we present techniques of MPNE value set approximation by a sequence of sets of discretized functions iterated on our approximated APS-type operator. This method is new and has some advantages as compared to Judd, Yeltekin, and Conklin (2003), Feng, Miao, Peralta-Alva, and Santos (2014) or Sleet and Yeltekin (2015). We show applications of our approach to hyperbolic discounting games and dynamic games with strategic complementarities