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On Myopic Equilibria in Dynamic Games with Endogenous Discounting, Wilko Bolt, Alexander Tieman

Abstract
This paper derives an equilibrium for a competitive multi-stage game in which an agents' current action influences his probability of survival into the next round of play. This is directly relevant in banking, where a banks' current lending and pricing decisions determines its future probability of default. In technical terms, our innovation is to consider a multi-stage game with endogenous discounting. An equilibrium for such a multi-stage game with endogenous discounting has not been derived before in the literature
Table Of Contents
""Contents""; ""I Introduction""; ""II Defining the multi-stage game with endogenous discounting""; ""III Equilibrium analysis""; ""IV Finite horizon and equilibrium selection""; ""V An illustrative example""; ""VI Discussion and concluding remarks""; ""Appendix""; ""References""
Language
eng
Literary Form
non fiction
Note
"December 2006."
Physical Description
1 online resource (18 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781452791500

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