Computing Equilibria of Dynamic Games
提出一种数值方法，用于计算离散状态和行动动态博弈中所有纯策略子博弈完美均衡值，通过单调映射消除占优策略，并给出内外近似以检验精度，适用于动态寡头竞争等场景。
We develop a numerical method for computing all pure strategy subgame-perfect equilibrium values of dynamic strategic games with discrete states and actions. We define a monotone mapping that eliminates dominated strategies, and when applied iteratively, delivers an accurate approximation to the true equilibrium payoffs of the underlying game. Our algorithm has three parts. The first provides an outer approximation to equilibrium values, constructed so that any value outside of this approximation is not an equilibrium value. The second provides an inner approximation; any value contained within this approximation is an equilibrium value. Together, the two approximations deliver a practical check of approximation accuracy. The third part of our algorithm delivers sample equilibrium paths. To illustrate our method, we apply it to a dynamic oligopoly competition with endogenous production capacity.