Peeters, Ronald; Pot, Erik; Vermeulen, Dries; Flesch, Janos - Society for Economic Dynamics - SED - 2009
The model we use is a stochastic game, with transition probabilities between the states, depending on the actions performed in each state. The model's parameters can be chosen in such a way that a variety of economic situations can be analyzed. We derive results for the model with three states...