Discussion Paper
Recursive Methods in Discounted Stochastic Games: An Algorithm for Delta Approaching 1 and a Folk Theorem
We present an algorithm to compute the set of perfect public equilibrium payoffs as the discount factor tends to one for stochastic games with observable states and public (but not necessarily perfect) monitoring when the limiting set of (long-run players’) equilibrium payoffs is independent of the state. This is the case, for instance, if the Markov chain induced by any Markov strategy profile is irreducible.