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In dynamic environments, Q-learning is an adaptative rule that provides an estimate (a Q-value) of the continuation value associated with each alternative. A naive policy consists in always choosing the alternative with highest Q-value. We consider a family of Q-based policy rules that may...
Persistent link: https://www.econbiz.de/10014344942
The repeated game literature studies long run/repeated interactions, aiming to understand how repetition may foster cooperation. Conditioning future behavior on past play is crucial in this endeavor. For most situations of interest a given player does not directly observe the actions chosen by...
Persistent link: https://www.econbiz.de/10013082196
Persistent link: https://www.econbiz.de/10014165863
This paper examines the implications for equilibrium price of a shift in demand and also provides formal characterizations in a general dynamic model of perfect equilibrium, the relation between dominated and dominant strategies, the relation between reversion and generalized reversion strategy...
Persistent link: https://www.econbiz.de/10012854224
A nonstandard counterpart to the results of Allen and Hellwig (1986) on the convergence of a Bertrand-Edgeworth equilibrium arising out of price setting by firms operating under capacity constraint into a Walrasian (or competitive) equilibrium is presented and analyzed
Persistent link: https://www.econbiz.de/10013241146
We consider a model of monopolistic competition with several heterogeneous sectors and endogenous labor supply. For low (high) values of the labor supply elasticity, we show that there is always a unique equilibrium. For medium values of the labor supply elasticity, the set of equilibria (if...
Persistent link: https://www.econbiz.de/10012229297
I consider a class of dynamic Bayesian games in which types evolve stochastically according to a first-order Markov process on a continuous type space. Types are privately informed, but they become public together with actions when payoffs are obtained, resulting in a delayed information...
Persistent link: https://www.econbiz.de/10015271402
Counterfactual policy evaluation often requires computation of game-theoretic equilibria. We provide new algorithms for computing pure-strategy Nash equilibria of games on networks with finite action spaces. The algorithms exploit the fact that many agents may be endowed with types such that a...
Persistent link: https://www.econbiz.de/10012848647
We consider global games with general payoff structures and prove existence of equilibrium. This shows that the global games method is well-defined with arbitrary strategic interaction among players, thus providing a foundation for the study of more general equilibrium behavior, especially as...
Persistent link: https://www.econbiz.de/10012894111
Agency may be exercised by different entities (e.g. individuals, firms, households). A given individual can form part of multiple agents (e.g. he may belong to a firm and a household). The set of agents that act in a given situation might not be common knowledge. We adapt the standard model of...
Persistent link: https://www.econbiz.de/10012932880