Advanced Search
MyIDEAS: Login to save this article or follow this journal

Noise-independent selection in global games and monotone potential maximizer: A symmetric 3×3 example

Contents:

Author Info

  • Honda, Jun
Registered author(s):

    Abstract

    This note studies the relationship between the global game and the generalized potential game approaches. We provide a non-degenerate example of a symmetric 3×3 supermodular game that has no monotone potential maximizer (MP-maximizer). Since the global-game solution for symmetric 3×3 supermodular games is independent of the noise distribution, this implies that MP-maximizer is not a necessary condition for global-game noise-independent selection.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0304406811000590
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Mathematical Economics.

    Volume (Year): 47 (2011)
    Issue (Month): 6 ()
    Pages: 663-669

    as in new window
    Handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:663-669

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/jmateco

    Related research

    Keywords: Equilibrium selection; Global games; Supermodular games; Potential games; Monotone potential;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Christian Basteck & Tijmen R. Daniëls & Frank Heinemann, 2010. "Characterising Equilibrium Selection in Global Games with Strategic Complementarities," SFB 649 Discussion Papers, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany SFB649DP2010-008, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    2. Carlsson, H. & Damme, E.E.C. van, 1990. "Global games and equilibrium selection," Discussion Paper, Tilburg University, Center for Economic Research 1990-52, Tilburg University, Center for Economic Research.
    3. Morris, Stephen & Shin, Hyun Song, 1998. "Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks," American Economic Review, American Economic Association, American Economic Association, vol. 88(3), pages 587-97, June.
    4. Galesloot, Bob M. & Goyal, Sanjeev, 1997. "Costs of flexibility and equilibrium selection," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 28(3), pages 249-264, October.
    5. Atsushi Kajii & Stephen Morris, . ""The Robustness of Equilibria to Incomplete Information*''," CARESS Working Papres, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences 95-18, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
    6. Giancarlo Corsetti & Amil Dasgupta & Stephen Morris & Hyun Song Shin, 2004. "Does One Soros Make a Difference? A Theory of Currency Crises with Large and Small Traders," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 87-113.
    7. Itay Goldstein & Ady Pauzner, 2005. "Demand-Deposit Contracts and the Probability of Bank Runs," Journal of Finance, American Finance Association, American Finance Association, vol. 60(3), pages 1293-1327, 06.
    8. Oyama, Daisuke & Takahashi, Satoru & Hofbauer, Josef, 2008. "Monotone methods for equilibrium selection under perfect foresight dynamics," Theoretical Economics, Econometric Society, Econometric Society, vol. 3(2), June.
    9. Frankel, David M. & Morris, Stephen & Pauzner, Ady, 2003. "Equilibrium Selection in Global Games with Strategic Complementarities," Staff General Research Papers, Iowa State University, Department of Economics 11920, Iowa State University, Department of Economics.
    10. Stephen Morris & Takashi Ui, 2003. "Generalized Potentials and Robust Sets of Equilibria," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 1394, Cowles Foundation for Research in Economics, Yale University.
    11. Stephen Morris & Hyun Song Shin, 1999. "Coordination Risk and the Price of Debt," Cowles Foundation Discussion Papers, Cowles Foundation for Research in Economics, Yale University 1241R, Cowles Foundation for Research in Economics, Yale University, revised Feb 2002.
    12. Ui, Takashi, 2001. "Robust Equilibria of Potential Games," Econometrica, Econometric Society, Econometric Society, vol. 69(5), pages 1373-80, September.
    13. Goldstein, Itay & Pauzner, Ady, 2004. "Contagion of self-fulfilling financial crises due to diversification of investment portfolios," Journal of Economic Theory, Elsevier, Elsevier, vol. 119(1), pages 151-183, November.
    14. Josef HOFBAUER & Gerhard SORGER, 1998. "Perfect Foresight and Equilibrium Selection in Symmetric Potential Games," Vienna Economics Papers, University of Vienna, Department of Economics vie9802, University of Vienna, Department of Economics.
    15. Akihiko Matsui & Kiminori Matsuyama, 1991. "An Approach to Equilibrium Selection," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 1065, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    16. Goyal, Sanjeev & Janssen, Maarten C. W., 1997. "Non-Exclusive Conventions and Social Coordination," Journal of Economic Theory, Elsevier, Elsevier, vol. 77(1), pages 34-57, November.
    17. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, Elsevier, vol. 14(1), pages 124-143, May.
    18. Oyama, Daisuke & Takahashi, Satoru, 2011. "On the relationship between robustness to incomplete information and noise-independent selection in global games," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 47(6), pages 683-688.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Oyama, Daisuke & Takahashi, Satoru, 2011. "On the relationship between robustness to incomplete information and noise-independent selection in global games," Journal of Mathematical Economics, Elsevier, Elsevier, vol. 47(6), pages 683-688.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:663-669. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.