Sunspot Equilibrium in Positive Recursive Two-Dimensions Quitting Absorbing Games

TL;DR

This paper proves the existence of uniform sunspot epsilon-equilibria in two classes of multiplayer absorbing games, extending previous results and enhancing understanding of equilibrium concepts in dynamic games.

Contribution

It establishes the existence of uniform sunspot epsilon-equilibria in positive recursive two-dimensional quitting absorbing games, broadening prior theoretical frameworks.

Findings

Existence of uniform sunspot epsilon-equilibria in specified game classes

Extension of earlier results by Solan and Solan (2018, 2019)

Advancement in equilibrium theory for dynamic multiplayer games

Abstract

A uniform sunspot epsilon-equilibrium of a dynamic game is a uniform epsilon-equilibrium in an extended game, where the players observe a public signal at every stage. We prove that a uniform sunspot epsilon-equilibrium exists in two classes of multiplayer absorbing games, thereby extending earlier works by Solan and Solan (2019, 2018).