Erik Ekström: Ghost games
Time: Wed 2019-11-20 15.15
Participating: Erik Ekström, Uppsala universitet
We study games with uncertainty about the existence of competitors (ghosts). Such a set-up is well-suited for example for online auctions, or in the context of real options with investors who do not want to reveal their interest in a certain business opportunity. We first discuss non-dynamic versions of the game (auctions), and then we generalise to ghost games of optimal stopping type (real options) where we derive a Nash equilibrium in randomized stopping times which is described explicitly in terms of the corresponding one-player game.
This is joint work with Tiziano De Angelis.