Doraszelski, Ulrich; Escobar, Juan - In: Theoretical Economics 5 (2010) 3, pp. 369-402
This paper studies generic properties of Markov perfect equilibria in dynamic stochastic games. We show that almost all … dynamic stochastic games have a finite number of locally isolated Markov perfect equilibria. These equilibria are essential … regularity for dynamic stochastic games and exploit a simple connection between normal form and dynamic stochastic games. …
