Borkovsky, Ron N.; Doraszelski, Ulrich; Kryukov, Yaroslav - C.E.P.R. Discussion Papers - 2008
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...