DP5583 Strategic Complementarities in Multi-Stage Games
|Publication Date:||March 2006|
|Keyword(s):||adjustment costs, learning curve, Markov game, supermodularity, two-stage game|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=5583|
We provide sufficient conditions in finite-horizon multi-stage games for the value function of each player, associated to extremal Markov perfect equilibria, to display strategic complementarities and for the contemporaneous equilibrium to be increasing in the state variables.