Markovian randomized equilibria for general Markovian Dynkin games in discrete time

Fuente: arXiv
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Main Authors: Christensen, Sören, Lindensjö, Kristoffer, Neumann, Berenice Anne
Format: Preprint
Published: 2023
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_version_ 1866918122229858304
author Christensen, Sören
Lindensjö, Kristoffer
Neumann, Berenice Anne
author_facet Christensen, Sören
Lindensjö, Kristoffer
Neumann, Berenice Anne
contents We study a general formulation of the classical two-player Dynkin game in a discrete time Markovian setting. We identify an appropriate class of mixed strategies -- \textit{Markovian randomized stopping times} -- in which players stop at any given state with a state-dependent probability. One main result is an explicit characterization of Wald-Bellman-type for Nash equilibria based on this notion of randomization. In particular, we derive a novel characterization of randomized equilibria in zero-sum Dynkin games, which we use to (i) establish the existence and explicit construction of Markovian randomized equilibria, (ii) provide necessary and sufficient conditions for the non-existence of pure strategy equilibria, and (iii) construct an example that admits a unique randomized equilibrium but no pure one. We also provide existence and characterization results in the symmetric version of our game. Finally, we establish existence of a characterizable equilibrium in Markovian randomized stopping times for the general game formulation under the assumption that the state space is countable.
format Preprint
id arxiv_https___arxiv_org_abs_2307_13413
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Markovian randomized equilibria for general Markovian Dynkin games in discrete time
Christensen, Sören
Lindensjö, Kristoffer
Neumann, Berenice Anne
Probability
Optimization and Control
91A55, 60G40, 91A15
We study a general formulation of the classical two-player Dynkin game in a discrete time Markovian setting. We identify an appropriate class of mixed strategies -- \textit{Markovian randomized stopping times} -- in which players stop at any given state with a state-dependent probability. One main result is an explicit characterization of Wald-Bellman-type for Nash equilibria based on this notion of randomization. In particular, we derive a novel characterization of randomized equilibria in zero-sum Dynkin games, which we use to (i) establish the existence and explicit construction of Markovian randomized equilibria, (ii) provide necessary and sufficient conditions for the non-existence of pure strategy equilibria, and (iii) construct an example that admits a unique randomized equilibrium but no pure one. We also provide existence and characterization results in the symmetric version of our game. Finally, we establish existence of a characterizable equilibrium in Markovian randomized stopping times for the general game formulation under the assumption that the state space is countable.
title Markovian randomized equilibria for general Markovian Dynkin games in discrete time
topic Probability
Optimization and Control
91A55, 60G40, 91A15
url https://arxiv.org/abs/2307.13413