Duggan, John; Kalandrakis, Tasos - In: Journal of Economic Theory 147 (2012) 5, pp. 1653-1688
We prove existence of stationary Markov perfect equilibria in an infinite-horizon model of legislative policy making in which the policy outcome in one period determines the status quo for the next. We allow for a multidimensional policy space and arbitrary smooth stage utilities, and we assume...