Subgame perfect equilibrium in stationary strategies (SSPE) is the most important solution concept used in applications of stochastic games, which makes it imperative to develop efficient numerical methods to compute an SSPE. For this purpose, this paper develops an interior-point path-following...

This paper considers an infinitely repeated three-player Bayesian game with lack of information on two sides, in which an informed player plays two zero-sum games simultaneously at each stage against two uninformed players. This is a generalization of Aumann, Maschler and Stearns (1995)...

We report results from an experiment that explores the empirical validity of correlated equilibrium, an important generalization of the Nash equilibrium concept. Specifically, we seek to understand the conditions under which subjects playing the game of Chicken will condition their behavior on...

In this paper we review a number of algorithms to compute Nash equilibria in deterministic linear quadratic differential games. We will review the open-loop and feedback information case. In both cases we address both the finite and the infinite-planning horizon

The aim of this article is to link Veblen's work on evolutionary economics to recently developed evolutionary game theory (EGT). This represents the first step towards incorporating Veblen's socio-economic evolution theory into discussion concerning applying EGT to social environments. An...

We consider truthful implementation of the socially efficient allocation in a dynamic private value environment in which agents receive private information over time. We propose a suitable generalization of the Vickrey-Clarke-Groves mechanism, based on the marginal contribution of each agent. In...

Game theory is the study of situations with multiple decision makers, and each player's payoff depends on what other players do. A multistage game is one in which the decision makers make their decisions in multiple stages

This paper investigates the relationship between the existence of equilibria in behavioral strategies, perfect recall, and notions of convexity in extensive form games. The central result is that players possess perfect recall if and only if their sets of behavioral strategies are behavioral...

We study a linear interaction model with asymmetric information. We first characterize the linear Bayes Nash equilibrium for a class of one dimensional signals. It is then shown that this class of one dimensional signals provide a comprehensive description of the first and second moments of the...

Traditionally social sciences are interested in structuring people in multiple groups based on their individual preferences. This paper suggests an approach to this problem in the framework of a noncooperative game theory.Definition of a suggested finite game includes a family of nested...