Heterogeneity in a Class of Two-Player Games
AbstractIn two-player games with negative (positive) spillovers it is well-known that symmetric agents both overact (underact) at the Nash equilibria. We show that for heterogeneous agents this rule of thumb has to be amended if the game features strategic substitutability.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 31 (2011)
Issue (Month): 1 ()
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heterogeneity; over(under)-investment; strategic complementarity; strategic substitutability; two-player games;
Other versions of this item:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D6 - Microeconomics - - Welfare Economics
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