Implicit games: Analysis of asymptotic competitive behaviors

This paper is concerned with the analysis of asymptotic equilibrium solutions of dynamic games through the static games. The steady-state solutions of both discrete-time and continuous-time dynamic games are characterized as the solutions of the associated static games, termed as implicit games. The idea of analyzing implicit games without solving the original dynamic games will provide a great analytical aid in investigating dynamic competitive processes. The authors apply these techniques to analysis of an oligopolistic market, and show some differences between dynamic and static oligopoly games can be explicitly explored.