DP6470 Recursive Global Games
|Author(s):||Chryssi Giannitsarou, Flavio Toxvaerd|
|Publication Date:||September 2007|
|Keyword(s):||dynamic global games, Dynamic supermodular games, endogenous cycles|
|JEL(s):||C73, D43, E32|
|Programme Areas:||Industrial Organization|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=6470|
The present paper contributes to the literature on dynamic games with strategic complementarities, in two interrelated ways. First, we identify a class of dynamic complete information games in which intertemporal complementarities and multiple equilibria can be fruitfully analyzed. Second, we extend the analysis to an incomplete information framework, where results from the literature on global games can be applied to select a unique Markov perfect equilibrium in monotone strategies.