DP5583 Strategic Complementarities in Multi-Stage Games

Author(s): Xavier Vives
Publication Date: March 2006
Keyword(s): adjustment costs, learning curve, Markov game, supermodularity, two-stage game
JEL(s): C73, L13
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.