Similar Search Results

Uniqueness in Infinitely Repeated Decision Problems

Vieille, Nicolas; Weibull, Jörgen W. - 2002

Dynamic decision-making without commitment is usually modelled as a game between the current and future selves of the … decision maker. It has been observed that if the time-horizon is infinite, then such games may have multiple subgame … decision problems with discounting. The condition is two-fold: the range of possible utility levels in the decision problem …

Persistent link: https://www.econbiz.de/10010334653

Continuous-time public good contribution under uncertainty

Ferrari, Giorgio; Riedel, Frank; Steg, Jan-Henrik - 2013

We study a continuous-time problem of optimal public good contribution under uncertainty for an economy with a finite number of agents. Each agent can allocate his wealth between private consumption and repeated but irreversible contributions to increase the stock of some public good. We study...

Persistent link: https://www.econbiz.de/10010319969

Stochastic stability in finite extensive-form games of perfect information

Xu, Zibo - 2013

We consider a basic stochastic evolutionary model with rare mutation and a best-reply (or better-reply) selection mechanism. Following Young's papers, we call a state stochastically stable if its long-term relative frequency of occurrence is bounded away from zero as the mutation rate decreases...

Persistent link: https://www.econbiz.de/10011381249

The Welfare of Ramsey Optimal Policy Facing Auto-Regressive Shocks

Chatelain, Jean-Bernard; Ralf, Kirsten - In: Economics Bulletin 40 (2020) 2, pp. 1797-1803

With non-controllable auto-regressive shocks, the welfare of Ramsey optimal policy is the solution of a single Riccati equation of a linear quadratic regulator. The existing theory by Hansen and Sargent (2007) refers to an additional Sylvester equation but miss another equation for computing the...

Persistent link: https://www.econbiz.de/10012234806

A theory of regular Markov perfect equilibria in dynamic stochastic games: genericity, stability, and purification

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 and strongly stable. Moreover, they all admit...

Persistent link: https://www.econbiz.de/10011599432

A stationary mean-field equilibrium model of irreversible investment in a two-regime economy

Aïd, René; Basei, Matteo; Ferrari, Giorgio - 2023

We consider a mean-field model of firms competing à la Cournot on a commodity market, where the commodity price is given in terms of a power inverse demand function of the industry-aggregate production. Investment is irreversible and production capacity depreciates at a constant rate....

Persistent link: https://www.econbiz.de/10014374581

Taking a shower in Youth Hostels: risks and delights of heterogeneity

Matzke, Christina; Challet, Damien - 2008

Tuning one's shower in some hotels may turn into a challenging coordination game with imperfect information. The temperature sensitivity increases with the number of agents, making the problem possibly unlearnable. Because there is in practice a finite number of possible tap positions, identical...

Persistent link: https://www.econbiz.de/10010264912

Product Pricing when Demand Follows a Rule of Thumb

Matzke, Christina; Wirth, Benedikt - 2009

assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit …

Persistent link: https://www.econbiz.de/10010270001

Dinámica de inversión y competencia en generación eléctrica en un escenario de liberalización en el Perú: La importancia de los contratos de largo plazo

Rivasplata Ramírez, Arnold Rúben; García Carpio, … - In: Revista de Métodos Cuantitativos para la Economía y … 28 (2019), pp. 224-242

We analyze the behavior of electricity generation groups that make investment and production decisions in a liberalized market scenario by introducing long-term contracts, in a context where there is a high level of market concentration. In this way, a dynamic deterministic model of imperfect...

Persistent link: https://www.econbiz.de/10014494507

Evolutionary dynamics do not lead to correlated equilibria

Viossat, Yannick - 2006

In (Viossat, 2006, The replicator dynamics does not lead to correlated equilibria, forthcoming in Games and Economic Behavior), it was shown that the replicator dynamics may eliminate all pure strategies used in correlated equilibrium, so that only strategies that do not take part in any...

Persistent link: https://www.econbiz.de/10010281341