Business Economics and Public Policy Papers
Document Type
Journal Article
Date of this Version
8-2010
Publication Source
Operations Research
Volume
58
Issue
4
Start Page
1116
Last Page
1132
DOI
10.1287/opre.1100.0843
Abstract
This paper provides a step-by-step guide to solving dynamic stochastic games using the homotopy method. The homotopy method facilitates exploring the equilibrium correspondence in a systematic fashion; it is especially useful in games that have multiple equilibria. We discuss the theory of the homotopy method and its implementation and present two detailed examples of dynamic stochastic games that are solved using this method.
Keywords
computation, dynamic stochastic games, homotopy method, Markov-perfect equilibrium
Recommended Citation
Borkovsky, R. N., Doraszelski, U., & Kryukov, Y. (2010). A User’s Guide to Solving Dynamic Stochastic Games Using the Homotopy Method. Operations Research, 58 (4), 1116-1132. http://dx.doi.org/10.1287/opre.1100.0843
Date Posted: 27 November 2017
This document has been peer reviewed.