COMPUTING MARKOV-PERFECT NASH EQUILIBRIA - NUMERICAL IMPLICATIONS OF A DYNAMIC DIFFERENTIATED PRODUCT MODEL

• 成果类型: Article
• 署名作者: PAKES, A; MCGUIRE, P
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.2307/2555975
• 发表日期: 1994
• 页码: 555-589
• 关键词: competition; oligopoly; COSTS

摘要

In this article we develop and illustrate a simple algorithm for computing Markov-perfect Nash equilibria. The advantage of the Markov-perfect framework is that it is flexible enough to reproduce important aspects of reality in a variety of market settings. As a result, we hope that our article and (perhaps improved) versions of the associated algorithms will eventually be a part of a tool kit that allows researchers to go back and forth between the implications of economic theory and the characteristics of alternative datasets.