Stochastic discounting in repeated games: awaiting the almost inevitable

Warning The system is temporarily closed to updates for reporting purpose.

Ürgün, Can (2011) Stochastic discounting in repeated games: awaiting the almost inevitable. [Thesis]

[thumbnail of CanUrgun_407480.pdf] PDF

Download (428kB)


This thesis studies repeated games with pure strategies and stochastic discounting under perfect information. We consider infinite repetitions of any finite normal form game possessing at least one pure Nash action profile. We consider stochastic discounting processes satisfying Markov property, Martingale property, having bounded increments (across time) and possessing an infinite state space with a rich ergodic subset. We further require that there are states of the stochastic process with the resulting stochastic discount factor arbitrarily close to 0, and such states can be reached with positive (yet possibly arbitrarily small) probability in the long run. In this study, a player's discount factor is such a process. In this setting, we, not only establish the (subgame perfect) Folk Theorem, but also prove the main result of this study: In any equilibrium path, the occurrence of any finite number of consecutive repetitions of the period Nash action profile, must almost surely happen within a finite time window. That is, any equilibrium strategy almost surely contains arbitrary long realizations of consecutive period Nash action profiles.
Item Type: Thesis
Uncontrolled Keywords: Repeated games. -- Stochastic discounting. -- Stochastic games. -- Folk theorem. -- Stopping time. -- Sonsuz tekrarlı oyunlar. -- Stokastik iskontolama. -- Stokastik oyunlar. -- Folk teoremi. -- Varış zamanı.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: IC-Cataloging
Date Deposited: 01 Nov 2012 11:00
Last Modified: 26 Apr 2022 09:56

Actions (login required)

View Item
View Item