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Conditional Markov equilibria in discounted dynamic games

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  • Mitri Kitti

Abstract

This paper introduces conditional Markov strategies in discrete-time discounted dynamic games with perfect monitoring. These are strategies in which players follow Markov policies after all histories. Policies induced by conditional Markov equilibria can be supported with the threat of reverting to the policy that yields the smallest expected equilibrium payoff for the deviator. This leads to a set-valued fixed-point characterization of equilibrium payoff functions. The result can be used for the computation of equilibria and for showing the existence in behavior strategies. Copyright Springer-Verlag Berlin Heidelberg 2013

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  • Mitri Kitti, 2013. "Conditional Markov equilibria in discounted dynamic games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(1), pages 77-100, August.
    • Handle: RePEc:spr:mathme:v:78:y:2013:i:1:p:77-100
    DOI: 10.1007/s00186-013-0433-x
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    Cited by:

    1. Mitri Kitti, 2013. "Subgame Perfect Equilibria in Discounted Stochastic Games," Discussion Papers 87, Aboa Centre for Economics.
    2. Mitri Kitti, 2018. "Subgame Perfect Equilibria in Continuous-Time Repeated Games," Discussion Papers 120, Aboa Centre for Economics.
    3. Mitri Kitti, 2014. "Equilibrium Payoffs for Pure Strategies in Repeated Games," Discussion Papers 98, Aboa Centre for Economics.

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