Dynamic Coordination Games with Activation Costs

Abstract Motivated by inventory control problems with set-up costs, we consider a coordination game where each player’s dynamics is an model characterized controlled input and uncontrolled output. An activation cost shared among active players, namely players who their at given time. At time, player decides to be or not depending on its level. The main contribution of this paper show that strategies Nash equilibrium have threshold structure the number players. Furthermore, provide explicit expression for lower upper both in deterministic case, when exogenous signal known, single-stage game. relevance above results discussed context reordering imply single retailer reorders only if jointly other retailers will reorder restore pre-assigned