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Genericity and Markovian Behavior in Stochastic Games

Econometrica 2000 68(5), 1231-1248
This paper examines Markov perfect equilibria of general, finite state stochastic games. Our main result is that the number of such equilibria is finite for a set of stochastic game payoffs with full Lebesgue measure. We further discuss extensions to lower dimensional stochastic games like the alternating move game.