π Solving Directional Dynamic Games with Multiple Equilibria#
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Practical Task: Leapfrogging game Dancing equilibria movie DDG about restrictive covenants References
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Playing the Leapfrogging Game
Find the Leapfrogging simulator code in the exercises repo in the Jupyter notebook 8_rls/play_leapfrogging/ (Matlab)
Playing the Leapfrogging Game
Entry Deterrence through Restrictive Covenants
References and Additional Resources
π Iskhakov et al. [2018] βThe dynamics of Bertrand price competition with cost-reducing investmentsβ
π Iskhakov et al. [2016] βRecursive lexicographical search: Finding all markov perfect equilibria of finite state directional dynamic gamesβ
π Doraszelski and Escobar [2010] βA theory of regular Markov perfect equilibria in dynamic stochastic games: Genericity, stability, and purificationβ