Stochastic games of resource extraction

We study stochastic games of resource extraction in which the transition probability is a convex combination of stochastic kernels with coefficients depending on the joint investments of the players. Our approach covers the unbounded utility case which was not examined in this class of games beforehand. We give two theorems on the existence of pure stationary Markov perfect equilibria for the models of games under consideration. A detailed discussion with illustrative examples explains the meaning of our assumptions and their relation to the conditions used earlier in the literature.