Construction of Nash equilibria in symmetric stochastic games of capital accumulation. (Q703151)

The authors consider a class of concave games of capital accumulation. The main assumption on the transition probability function on the game is that it is a combination of finitely many stochastic kernels depending on the state variable only. However the coefficients on the combination may depend on the state and also on the consumption of the players. Since the authors restrict to symmetric games, they can prove Nash equilibria in the finite horizon games, and the corresponding equilibrium functions are monotically convergent. An iterative method leading to a Nash equilibrium in the infinite horizon game with the discounted evaluation is studied.