Document Type
Discussion Paper
Publication Date
1-1-2012
CFDP Number
1847
CFDP Pages
32
Abstract
This paper studies discounted stochastic games perfect or imperfect public monitoring and the opportunity to conduct voluntary monetary transfers. We show that for all discount factors every public perfect equilibrium payoff can be implemented with a simple class of equilibria that have a stationary structure on the equilibrium path and optimal penal codes with a stick and carrot structure. We develop algorithms that exactly compute or approximate the set of equilibrium payoffs and find simple equilibria that implement these payoffs.
Recommended Citation
Kranz, Sebastian, "Discounted Stochastic Games with Voluntary Transfers" (2012). Cowles Foundation Discussion Papers. 2206.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2206