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Dynamic Games with Almost Perfect Information

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  • He, Wei
  • Sun, Yeneng

Abstract

This paper aims to solve two fundamental problems on finite or infinite horizon dynamic games with perfect or almost perfect information. Under some mild conditions, we prove (1) the existence of subgame-perfect equilibria in general dynamic games with almost perfect information, and (2) the existence of pure-strategy subgame-perfect equilibria in perfect-information dynamic games with uncertainty. Our results go beyond previous works on continuous dynamic games in the sense that public randomization and the continuity requirement on the state variables are not needed. As an illustrative application, a dynamic stochastic oligopoly market with intertemporally dependent payoffs is considered.

Suggested Citation

  • He, Wei & Sun, Yeneng, 2015. "Dynamic Games with Almost Perfect Information," MPRA Paper 63345, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:63345
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    References listed on IDEAS

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    More about this item

    Keywords

    Dynamic games; almost perfect information; perfect information; subgame-perfect equilibirum;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D0 - Microeconomics - - General

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