# Subgame-Perfect Equilibria in Stochastic Timing Games

arXiv: https://arxiv.org/abs/1409.4597 · HTML: https://mlsanity.com/paper/1409.4597/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 16 Sep 2014.

## Built on by (most cited first, 1 of 1)

- [Exploratory Optimal Stopping: A Singular Control Formulation](https://mlsanity.com/paper/2408.09335/) (2024)

## Abstract (arXiv)

We introduce a notion of subgames for stochastic timing games and the related notion of subgame-perfect equilibrium in possibly mixed strategies. While a good notion of subgame-perfect equilibrium for continuous-time games is not available in general, we argue that our model is the appropriate version for timing games. We show that the notion coincides with the usual one for discrete-time games. Many timing games in continuous time have only equilibria in mixed strategies -- in particular preemption games, which often occur in the strategic real option literature. We provide a sound foundation for some workhorse equilibria of that literature, which has been lacking as we show. We obtain a general constructive existence result for subgame-perfect equilibria in preemption games and illustrate our findings by several explicit applications.