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Approximation and characterization of Nash equilibria of large games

Author

Listed:
  • Guilherme Carmona

    (University of Surrey)

  • Konrad Podczeck

    (Universität Wien)

Abstract

We characterize Nash equilibria of games with a continuum of players in terms of approximate equilibria of large finite games. This characterization precisely describes the relationship between the equilibrium sets of the two classes of games. In particular, it yields several approximation results for Nash equilibria of games with a continuum of players, which roughly state that all finite-player games that are sufficiently close to a given game with a continuum of players have approximate equilibria that are close to a given Nash equilibrium of the non-atomic game.

Suggested Citation

  • Guilherme Carmona & Konrad Podczeck, 2022. "Approximation and characterization of Nash equilibria of large games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 679-694, April.
    • Handle: RePEc:spr:joecth:v:73:y:2022:i:2:d:10.1007_s00199-020-01314-9
    DOI: 10.1007/s00199-020-01314-9
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    Cited by:

    1. Rabah Amir & Bernard Cornet & M. Ali Khan & David Levine & Edward C. Prescott, 2022. "Special Issue in honor of Nicholas C. Yannelis – Part II," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 377-385, April.

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    More about this item

    Keywords

    Nash equilibrium; Non-atomic games; Large games; Approximation;
    All these keywords.

    JEL classification:

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

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