Markov perfect equilibrium
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A Markov perfect equilibrium is an equilibrium concept in game theory. It has been used in analyses of industrial organization, macroeconomics, and political economy. It is a refinement of the concept of subgame perfect equilibrium to extensive form games for which a pay-off relevant state space can be identified. The term appeared in publications starting about 1988 in the work of economists Jean Tirole and Eric Maskin.[1][2][3][4]
Quick Facts Relationship, Subset of ...
Markov perfect equilibrium | |
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A solution concept in game theory | |
Relationship | |
Subset of | Subgame perfect equilibrium |
Significance | |
Proposed by | Eric Maskin, Jean Tirole |
Used for | tacit collusion; price wars; oligopolistic competition |
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