@article{402d79e09bd6402ab02e715526b7a572,
title = "A constructive study of Markov equilibria in stochastic games with strategic complementarities",
abstract = "We study a class of infinite horizon, discounted stochastic games with strategic complementarities. In our class of games, we prove the existence of a stationary Markov Nash equilibrium, as well as provide methods for constructing this least and greatest equilibrium via a simple successive approximation schemes. We also provide results on computable equilibrium comparative statics relative to ordered perturbations of the space of games. Under stronger assumptions, we prove the stationary Markov Nash equilibrium values form a complete lattice, with least and greatest equilibrium value functions being the uniform limit of approximations starting from pointwise lower and upper bounds.",
keywords = "Constructive methods, Markov equilibria, Stochastic games",
author = "{\L}ukasz Balbus and Kevin Reffett and {\L}ukasz Wo{\'z}ny",
note = "Funding Information: We thank Rabah Amir, Andy Atkeson, Eric Maskin, Andrzej Nowak, Frank Page, Adrian Peralta-Alva, Ed Prescott, Tarun Sabarwal, Manuel Santos and Jan Werner as well as participants of 10th Society for the Advancement in Economic Theory Conference in Singapore 2010; 2011 NSF/NBER/CEME conference in Mathematical Economics and General Equilibrium Theory in Iowa; the Theoretical Economics Conference at Kansas, Paris Game Theory Seminar participants at Institut Henri Poincar{\'e} for helpful comments and discussions. We especially would like to thank the associate editor and two anonymous referees at this journal for their exceptionally detailed comments over successive revisions of this paper. The project was partially financed by NCN research grant no. UMO-2012/07/D/HS4/01393 . Reffett thanks the Centre dʼEconomie de la Sorbonne at Universite de Paris, I during the Summer 2010, 2012 and 2013 for support of this work. Wo{\'z}ny acknowledges financial support from SGH Deanʼs Grant for Young Researchers 2010 . The usual caveats apply. ",
year = "2014",
doi = "10.1016/j.jet.2013.09.005",
language = "English (US)",
volume = "150",
pages = "815--840",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press Inc.",
number = "1",
}