Artículos de revistas
Protocol invariance and the timing of decisions in dynamic games
Fecha
2019Registro en:
Theoretical Economics, Volumen 14, Issue 2, 2019, Pages 597-646
15557561
19336837
10.3982/TE3230
Autor
Doraszelski, Ulrich
Escobar, Juan F.
Institución
Resumen
Copyright © 2019 The Authors.We characterize a class of dynamic stochastic games that we call separable dynamic games with noisy transitions and establish that these widely used models are protocol invariant provided that periods are sufficiently short. Protocol invariance means that the set of Markov perfect equilibria is nearly the same irrespective of the order in which players are assumed to move within a period. Protocol invariance can facilitate applied work, and renders the implications and predictions of a model more robust. Our class of dynamic stochastic games includes investment games, research and development races, models of industry dynamics, dynamic public contribution games, asynchronously repeated games, and many other models from the extant literature.