Perfect equilibrium in non-randomized strategies in a class of symmetric dynamic games
Abstract This paper considers a class of infinite-horizon dynamic games that has immediate application to problems stemming from the oligopolistic exploitation of (renewable or non-renewable) common property resources. Under a symmetry assumption on the payoff structure, it is shown that the game admits a subgameperfect equilibrium in non-randomized Markovian strategies. These equilibrium strategies possess certain strong regularity properties which facilitate characterization of equilibrium play. Stationary equilibria are not Pareto-optimal in a convex environment. Additionally, such equilibria necessarily result in monotonic trajectories.