On the timing of moves in two-player games

A-Tier
Journal: Journal of Economic Theory
Year: 2025
Volume: 230
Issue: C

Authors (4)

Karp, Larry (not in RePEc) Schmidt, Robert C. (not in RePEc) Simon, Leo Streekstra, Leanne (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We introduce a novel continuous-time framework for analyzing two-player games. Each player can move at most once, choosing an action along with its timing. We introduce assumptions that allow for a natural representation of such games, and establish results on the relation between discrete and continuous time. Unlike in Simon and Stinchcombe [1989], action sets are compact subsets of Rn (rather than finite). This substantially increases the scope for applications. For illustration, we analyze different variants of price competition with entry in continuous time. Our framework handles complexities such as discontinuous changes in prices, and allows us to predict the identity of the price leader with minimal calculation. We show that it depends on product differentiation and on the possibility to deter entry.

Technical Details

RePEc Handle
repec:eee:jetheo:v:230:y:2025:i:c:s002205312500153x
Journal Field
Theory
Author Count
4
Added to Database
2026-01-29