A User's Guide to Solving Dynamic Stochastic Games Using the Homotopy Method
- 1 August 2010
- journal article
- Published by Institute for Operations Research and the Management Sciences (INFORMS) in Operations Research
- Vol. 58 (4-part-2) , 1116-1132
- https://doi.org/10.1287/opre.1100.0843
Abstract
This paper provides a step-by-step guide to solving dynamic stochastic games using the homotopy method. The homotopy method facilitates exploring the equilibrium correspondence in a systematic fashion; it is especially useful in games that have multiple equilibria. We discuss the theory of the homotopy method and its implementation and present two detailed examples of dynamic stochastic games that are solved using this method.Keywords
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