A Note on the Existence of Nash Equilibrium in Games with Discontinuous Payoffs
AbstractThis paper generalises the approach taken by Dasgupta & Maskin (1986) and Simon (1989) and provides necessary and sufficient conditions for the existence of pure and mixed strategy Nash equilibrium in games with continuous strategy spaces and discontinuous payoff functions. The conditions can be applied widely, and examples for existence of pure strategy and monotonic equilibria in First-Price auctions are provided. The conditions are also appropriate for ensuring that computer generated equilibrium solutions can be extended to continuous strategy spaces.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0510.
Date of creation: Feb 2005
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Web page: http://www.econ.cam.ac.uk/index.htm
Nash Equilibrium; Discontinuous Payoff Function; First-price Auctions;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-02-27 (All new papers)
- NEP-GTH-2005-02-27 (Game Theory)
- NEP-MIC-2005-02-27 (Microeconomics)
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