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DP6470 Recursive Global Games

Author(s): Chryssi Giannitsarou , Flavio Toxvaerd
Publication Date: September 2007
Keyword(s): dynamic global games , Dynamic supermodular games , endogenous cycles
JEL(s): C73 , D43 , E32
Programme Areas: Industrial Organization
Link to this Page: www.cepr.org/pubs/dps/DP6470.asp.asp


The present paper contributes to the literature on dynamic games with strategic complementarities, in two interrelated ways. First, we identify a class of dynamic complete information games in which intertemporal complementarities and multiple equilibria can be fruitfully analyzed. Second, we extend the analysis to an incomplete information framework, where results from the literature on global games can be applied to select a unique Markov perfect equilibrium in monotone strategies.

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