In this paper, we prove the existence of a stationary Markov perfect equilibrium for a stochastic version of the bequest game. A novel feature in our approach is the fact that the transition probability need not be non-atomic and therefore, the deterministic production function is not excluded from consideration. Moreover, in addition to the common expected utility we also deal with a utility that takes into account an attitude of the generation towards risk.
['Łukasz Balbus', 'Anna Jaśkiewicz', 'Andrzej S. Nowak']
Stochastic bequest games