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Every symmetric 3×3 global game of strategic complementarities has noise-independent selection

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  • Basteck, Christian
  • Daniëls, Tijmen R.

Abstract

We prove that the global game selection in all 3×3 payoff-symmetric supermodular games is independent of the noise structure. As far as we know, all other proofs of noise-independent selection in such games rely on the existence of a so-called monotone potential (MP) maximiser. Our result is more general, since some 3×3 symmetric supermodular games do not admit an MP maximiser. As a corollary, noise-independent selection does not imply the existence of an MP maximiser, nor the existence of an equilibrium robust to incomplete information.

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Bibliographic Info

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

Volume (Year): 47 (2011)
Issue (Month): 6 ()
Pages: 749-754

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Handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:749-754

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Web page: http://www.elsevier.com/locate/jmateco

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Keywords: Global game; Noise-independent selection; Strategic complementarities; Supermodular game;

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Cited by:
  1. Oury, Marion, 2013. "Noise-independent selection in multidimensional global games," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2638-2665.
  2. Basteck, Christian & Daniëls, Tijmen R. & Heinemann, Frank, 2013. "Characterising equilibrium selection in global games with strategic complementarities," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2620-2637.
  3. 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, vol. 47(6), pages 683-688.

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