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Global Games with Strategic Substitutes

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Author Info
Rodrigo Harrison () (Department of Economics, Georgetown University)

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Abstract

This paper proves an equilibrium selection result for a class of games with strategic substitutes. Specifically, for a general class of binary action, N-player games, we prove that each such game has a unique equilibrium strategy profile. Using a global game approach first introduced by Carlsson and van Damme (1993), recent selection results apply to games with strategic complementarities. The present paper uses the same approach but removes the assumption of perfect symmetry in the dominance region of the players' payo.s. Instead we assume that players are ordered such that asymmetric dominance regions overlapped sequentially. This allow us to extend selection results to a class of games with strategic substitutes.

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Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~03-03-06.

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Handle: RePEc:geo:guwopa:gueconwpa~03-03-06

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  1. Mathevet, Laurent, . "A contraction principle for finite global games," Working Papers 1243, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Rosenkranz, Stephanie & Weitzel, Utz, 2008. "Network Structure and Strategic Investments: An Experimental Analysis," CEPR Discussion Papers 6855, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.


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