Sesión Matemática DiscretaNonstationary equilibria in a class of dynamic games with heterogeneous discounting
Luis Alcalá
Instituto de Matemática Aplicada San Luis, UNSL-CONICET, Argentina - Esta dirección de correo electrónico está siendo protegida contra los robots de spam. Necesita tener JavaScript habilitado para poder verlo.
The study of dynamic games with heterogeneous discount factors has remained a relatively unexplored research area which involves several technical challenges. Recent contributions to the literature have found significant differences with the case of symmetric discounting. This paper introduces nonstationary strategies in a class of common property games, also known as dynamic resource games. We show that there exists a full-commitment equilibrium which tends to favor impatient players at the early stages of the game, but more patient players toward the late stages and in the long-run. This equilibrium is Pareto optimal. We also characterize Markov-perfect equilibria in nonstationary strategies and analyze their stability properties.