Dynamic equilibria in multigeneration stochastic games

Abstract

Stochastic sequential games are considered, with the assumption that to each stage there corresponds a generation of players. Introdncing the concept of imperfect altruism, a class of solution concepts called intergenerational equilibria is investigated. Complete intergenerational equilibria, where all players adopt a noncooperative mood of play, are first characterized. Existence of stationary equilibria is proved for infinite horizon games. The concept of the intergenerational game is then extended to allow for variable moods of play in each generation.