On the Computation of Value Correspondences
journal contributionposted on 01.10.2008 by Christopher Sleet, Sevin Yeltekin Sleet
Any type of content formally published in an academic journal, usually following a peer-review process.
Recursive game theory provides theoretical procedures for computing the equilibrium payoff sets of repeated games and the equilibrium payoff correspondences of dynamic games. In this paper, we propose and implement outer and inner approximation methods for value correspondences that naturally occur in the analysis of dynamic games. The procedure utilizes set-valued step functions. We provide an application to a bilateral insurance game with storage.