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When does restricting your opponent's freedom hurt you?

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  • Pei, Harry Di

Abstract

I examine the payoff consequences for a player when she removes a subset of her opponent's actions before playing a two-player complete information normal form game. When she faces a constraint on the maximal number of actions she can remove, she can be strictly better off by not removing any actions. I present such an example. I also establish sufficient conditions under which removing opponent's actions cannot hurt. As a corollary, I also characterize a necessary condition for a player's optimal Nash Equilibrium in games with generic payoffs when her opponent has strictly more actions than she does.

Suggested Citation

  • Pei, Harry Di, 2016. "When does restricting your opponent's freedom hurt you?," Games and Economic Behavior, Elsevier, vol. 100(C), pages 234-239.
    • Handle: RePEc:eee:gamebe:v:100:y:2016:i:c:p:234-239
    DOI: 10.1016/j.geb.2016.10.004
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    References listed on IDEAS

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    1. Bernheim, B Douglas & Whinston, Michael D, 1998. "Incomplete Contracts and Strategic Ambiguity," American Economic Review, American Economic Association, vol. 88(4), pages 902-932, September.
    2. Bade, Sophie & Haeringer, Guillaume & Renou, Ludovic, 2009. "Bilateral commitment," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1817-1831, July.
    3. Romano, Richard & Yildirim, Huseyin, 2005. "On the endogeneity of Cournot-Nash and Stackelberg equilibria: games of accumulation," Journal of Economic Theory, Elsevier, vol. 120(1), pages 73-107, January.
    4. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
    5. Renou, Ludovic, 2009. "Commitment games," Games and Economic Behavior, Elsevier, vol. 66(1), pages 488-505, May.
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    More about this item

    Keywords

    Normal form game; Restricting freedom; Carathéodory's Theorem;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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