TY  - JOUR
AU  - Doraszelski,Ulrich
AU  - Judd,Kenneth L.
TI  - Avoiding the Curse of Dimensionality in Dynamic Stochastic Games
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 304
PY  - 2005
Y2  - January 2005
UR  - http://www.nber.org/papers/t0304
L1  - http://www.nber.org/papers/t0304.pdf
N1  - Author contact info:
Kenneth L. Judd
Hoover Institution
Stanford University
Stanford, CA  94305-6010
Tel: 650/723-5866
Fax: 650/723-1687
E-Mail: kennethjudd@mac.com
AB  - Continuous-time stochastic games with a finite number of states have substantial computational and conceptual advantages over the more common discrete-time model. In particular, continuous time avoids a curse of dimensionality and speeds up computations by orders of magnitude in games with more than a few state variables. The continuous-time approach opens the way to analyze more complex and realistic stochastic games than is feasible in discrete-time models.
ER  -