Open AccessDynamic games with (almost) perfect information
Author(s) -
He Wei,
Sun Yeneng
Publication year - 2020
Publication title -
theoretical economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.404
H-Index - 32
eISSN - 1555-7561
pISSN - 1933-6837
DOI - 10.3982/te2927
Subject(s) - subgame perfect equilibrium , mathematical economics , markov perfect equilibrium , sequential game , extensive form game , perfect information , complete information , upper and lower bounds , mathematics , repeated game , computer science , mathematical optimization , game theory , nash equilibrium , mathematical analysis
This paper aims to solve two fundamental problems on finite‐ or infinite‐horizon dynamic games with complete information. Under some mild conditions, we prove the existence of subgame‐perfect equilibria and the upper hemicontinuity of equilibrium payoffs in general dynamic games with simultaneous moves (i.e., almost perfect information), which go beyond previous works in the sense that stagewise public randomization and the continuity requirement on the state variables are not needed. For alternating move (i.e., perfect‐information) dynamic games with uncertainty, we show the existence of pure‐strategy subgame‐perfect equilibria as well as the upper hemicontinuity of equilibrium payoffs, extending the earlier results on perfect‐information deterministic dynamic games.