Protocol Invariance and the Timing of Decisions in Dynamic Games

Loading...
Thumbnail Image
Penn collection
Marketing Papers
Degree type
Discipline
Subject
dynamic games
Markov perfect equilibrium
protocol of moves
Behavioral Economics
Business
Cognitive Psychology
Marketing
Statistics and Probability
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Doraszelski, Ulrich
Escobar, Juan F
Contributor
Abstract

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, R&D races, models of industry dynamics, dynamic public construction games, asynchronously repeated games, and many other models from the extant literature.

Advisor
Date Range for Data Collection (Start Date)
Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
Publication date
2017-09-26
Volume number
Issue number
Publisher
Publisher DOI
Journal Issue
Comments
This is an unpublished manuscript.
Recommended citation
Collection