Solution of Multi-Player Linear-Quadratic Alternating-Move Games and Its Application to the Timing Pattern of Wage Adjustment.

In order to analyze a multi-player linear-quadratic alternating-move dynamicgame, this paper develops a solution method by making use of the similarstructure of this game and a simultaneous-move dynamic game with alternatingpayoff functions. It then applies the method to investigate whether staggeredor synchronized wage adjustment will be preferred when more than two wagesetters interact strategically and dynamically. The results suggest that thestrategic benefit provided by staggered wage adjustment is robust with respectto the number of sectors in the economy. [ABSTRACT FROM AUTHOR]