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An existence result for discontinuous games

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Author Info
Carmona, Guilherme
Abstract

We introduce a notion of upper semicontinuity, weak upper semicontinuity, and show that it, together with a weak form of payoff security, is enough to guarantee the existence of Nash equilibria in compact, quasiconcave normal form games. We show that our result generalizes the pure strategy existence theorem of Dasgupta and Maskin [P. Dasgupta, E. Maskin, The existence of equilibrium in discontinuous economic games, I: Theory, Rev. Econ. Stud. 53 (1986) 1-26] and that it is neither implied nor does it imply the existence theorems of Baye, Tian, and Zhou [M. Baye, G. Tian, J. Zhou, Characterizations of the existence of equilibria in games with discontinuous and non-quasiconcave payoffs, Rev. Econ. Stud. 60 (1993) 935-948] and Reny [P. Reny, On the existence of pure and mixed strategy equilibria in discontinuous games, Econometrica 67 (1999) 1029-1056]. Furthermore, we show that an equilibrium may fail to exist when, while maintaining weak payoff security, weak upper semicontinuity is weakened to reciprocal upper semicontinuity.

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Publisher Info
Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 144 (2009)
Issue (Month): 3 (May)
Pages: 1333-1340
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Handle: RePEc:eee:jetheo:v:144:y:2009:i:3:p:1333-1340

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Web page: http://www.elsevier.com/locate/inca/622869

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Related research
Keywords: Discontinuous games Nash equilibrium Upper semicontinuity Lower semicontinuity;

Cited by:
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  1. 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)
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This page was last updated on 2009-12-30.


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