2015
May
31

# Game Theory & Math Economics: Ben Brooks (University of Chicago) - "An algorithm for two-player stochastic games with perfect monitoring"

4:00pm to 5:00pm

## Location:

Elath Hall, 2nd floor, Feldman Building, Edmond J. Safra Campus

We study the subgame perfect equilibria of two-player stochastic games with perfect monitoring for a fixed discount factor. We develop a novel algorithm that, starting from larger correspondences, spirals inwards towards the state-dependent equilibrium payoff correspondence. At each iteration, starting from a vector of pivot points that are on the boundaries of each state's candidate equilibrium payoff set, we shave off part of each state's set of payoffs in a carefully chosen direction. The pivots are then advanced in this direction.