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Characterizations of the Existence of Equilibria in Games with Discontinuous and Non-quasiconcave Payoffs

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Author Info
Baye, Michael R
Tian, Guoqiang
Zhou, Jianxin

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Abstract

This paper characterizes pure-strategy and dominant-strategy Nash equilibrium in noncooperative games that may have discontinuous and/or non-quasi-concave payoffs. Conditions called diagonal transfer quasi-concavity and uniform transfer quasi-concavity are shown to be necessary and, with conditions called diagonal transfer continuity and transfer upper semicontinuity, sufficient for the existence of pure-strategy and dominant-strategy Nash equilibrium, respectively. The results are used to examine the existence or nonexistence of equilibrium in some well-known economic games with discontinuous and/or non-quasi-concave payoffs. Copyright 1993 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 60 (1993)
Issue (Month): 4 (October)
Pages: 935-48
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Handle: RePEc:bla:restud:v:60:y:1993:i:4:p:935-48

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  1. Carmona, Guilherme, 2008. "An Existence Result for Discontinuous Games," FEUNL Working Paper Series wp530, Universidade Nova de Lisboa, Faculdade de Economia. [Downloadable!]
  2. Francesco Ciardiello, 2007. "Convexity on Nash Equilibria without Linear Structure," Quaderni DSEMS 15-2007, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia. [Downloadable!]
  3. Francesco Ciardiello, 2007. "Some Examples and Counterexamples about Continuity on Equilibrium Problems," Quaderni DSEMS 16-2007, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia. [Downloadable!]
  4. McAdams, David, 2002. "Monotone Equilibrium in Multi-Unit Auctions," Working papers 4254-02, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
  5. Bich Philippe, 2009. "Existence of pure Nash equilibria in discontinuous and non quasiconcave games," International Journal of Game Theory, Springer, vol. 38(3), pages 395-410, November. [Downloadable!] (restricted)
  6. Rabia Nessah & Kristiaan Kerstens, 2008. "Characterizations of the Existence of Nash Equilibria with Non-convex Strategy Sets," Working Papers 2008-ECO-13, IESEG School of Management. [Downloadable!]
  7. Philippe Bich, 2008. "An extension of Reny's theorem without quasiconcavity," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00323348_v1, HAL. [Downloadable!]
  8. Jörg Franke & Tahir Öztürk, 2009. "Conflict Networks," Ruhr Economic Papers 0116, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  9. Oriol Carbonell-Nicolau & Efe Ok, 2004. "Multidimensional income taxation and electoral competition: an equilibrium analysis," Departmental Working Papers 200407, Rutgers University, Department of Economics. [Downloadable!]
  10. Guilherme Carmona, 2004. "On the Existence of Equilibria in Discontinuous Games: Three Counterexamples," Game Theory and Information 0402001, EconWPA. [Downloadable!]
    Other versions:
  11. Rabia Nessah & Guoqiang Tian, 2009. "The Existence of Equilibria in Discontinuous and Nonconvex Games," Working Papers 2008-ECO-14, IESEG School of Management. [Downloadable!]
  12. Rabia Nessah & Guoqiang Tian, 2009. "Existence of Equilibria in Discontinuous and Nonconvex Games," Levine's Working Paper Archive 814577000000000206, David K. Levine. [Downloadable!]
  13. Gatti, J.R.J., 2005. "A Note on the Existence of Nash Equilibrium in Games with Discontinuous Payoffs," Cambridge Working Papers in Economics 0510, Faculty of Economics, University of Cambridge. [Downloadable!]
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