Computable Markov - Perfect Industry Dynamics – Online Appendix –
نویسندگان
چکیده
... we have experimented quite a bit with the core version of the algorithm, and we never found two sets of equilibrium policies for a given set of primitives (we frequently run the algorithm several times using different initial conditions or different orderings of points looking for other equilibria that might exist). We should emphasize here that the core version, and indeed most other versions that have been used, all use quite simple functional forms for the primitives of the problem, and multiplicity of equilibrium may well be more likely when more complicated functional forms are used. Of course, most applied work suffices with quite simple functional forms. (pp. 18–19)
منابع مشابه
Computable Markov-perfect industry dynamics
We provide a general model of dynamic competition in an oligopolistic industry with investment, entry, and exit. To ensure that there exists a computationally tractable Markov perfect equilibrium, we introduce firm heterogeneity in the form of randomly drawn, privately known scrap values and setup costs into the model. Our game of incomplete information always has an equilibrium in cutoff entry...
متن کاملMarkov Perfect Industry Dynamics with Many Firms - Technical Appendix
Proof of Lemma A.3. Let Assumptions 3.2 and 3.3 hold. Assume that firms follow a common oblivious strategy µ ∈ ˜ M, the expected entry rate is λ ∈ ˜ Λ, and the expected time that each firm spends in the industry is finite. Let {Z x : x ∈ N} be a sequence of independent Poisson random variables with means {˜s µ,λ (x) : x ∈ N}, and let Z be a Poisson random variable with mean x∈N˜s µ,λ (x). Then,...
متن کاملIndustry Dynamics: From Elemental to Aggregate Models
Elemental models of the form pioneered by Ericson and Pakes (1995) capture the dynamics of a finite number of heterogeneous firms as they compete in an industry. Available algorithms can determine Markov perfect equilibrium behavior, though computational requirements become onerous when there are more than a few incumbent firms. Aggregate models of the form pioneered by Hopenhayn (1992), on the...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2010