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Dynamic Potential Games: The Discrete-Time Stochastic Case

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  • David González-Sánchez
  • Onésimo Hernández-Lerma

Abstract

This paper concerns a class of nonstationary discrete-time stochastic noncooperative games. Our goals are threefold. First, we give conditions to find Nash equilibria by means of the Euler equation approach. Second, we identify subclasses of dynamic potential games. Finally, within one of this subclasses, we identify a further subclass for which Nash equilibria are also Pareto (or cooperative) solutions. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • David González-Sánchez & Onésimo Hernández-Lerma, 2014. "Dynamic Potential Games: The Discrete-Time Stochastic Case," Dynamic Games and Applications, Springer, vol. 4(3), pages 309-328, September.
    • Handle: RePEc:spr:dyngam:v:4:y:2014:i:3:p:309-328
    DOI: 10.1007/s13235-014-0105-3
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