A theory of regular Markov perfect equilibria in dynamic stochastic games: Genericity, stability, and purification
نویسندگان
چکیده
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. JEL classification numbers: C73, C61, C62.
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