A Note on Discontinuous Value Functions and Strategies in Affine-Quadratic Differential Games.

We present an economic example of an affine-quadratic differential game where in Markov-perfect Nash equilibrium, the value function of a player is discontinuous in the model's parameters, implying that the strategy of that player is also discontinuous, even though the data of the game (state equation and pay-offs) are continuous in the parameters. Sufficient conditions ruling out such discontinuities are presented for the general scalar case.

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Year of publication:	1995
Authors:	Jensen, H. ; Lockwood, B.
Institutions:	Business School, University of Exeter
Subject:	GAME THEORY

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Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	8 pages
Classification:	C73 - Stochastic and Dynamic Games
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008852285