| Тойм: | This paper characterizes, and provides existence conditions for, geometrically ergodic and stationary Markov equilibria in a type of stochastic sequential game where players have two available actions, increasing or (weakly) decreasing the integer state. For example, offering goods for sale at a market increases market-wide stock; buying decreases that stock. Similarly, joining a queue lengthens it, unlike balking. Stationarity allows us to derive the invariant strategy of players ignorant of the state, without the need for dynamic programming. Applications of this result include a microfoundation for market-clearing price adjustment.
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