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Monotone Methods for Equilibrium Selection under Perfect Foresight Dynamics Author info | Abstract | Publisher info | Download info | Related research | Statistics Oyama, Daisuke
Takahashi, Satoru
Hofbauer, Josef
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This paper studies a dynamic adjustment process in a large society of forward-looking agents where payoffs are given by a normal form supermodular game. The stationary states of the dynamics correspond to the Nash equilibria of the stage game. It is shown that if the stage game has a monotone potential maximizer, then the corresponding stationary state is uniquely linearly absorbing and globally accessible for any small degree of friction. Among binary supermodular games, a simple example of a unanimity game with three players is provided where there are multiple globally accessible states for a small friction.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
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Date of creation: 02 May 2003Date of revision:
Handle: RePEc:pra:mprapa:1555Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany Phone: +49-(0)89-2180-2219 Fax: +49-(0)89-2180-3900 Web page: http://mpra.ub.uni-muenchen.de More information through EDIRC
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Keywords: equilibrium selection ; perfect foresight dynamics ; supermodular game ; strategic complementarity ; stochastic dominance ; potential ; monotone potential ; Other versions of this item:
Article Paper Deisuke Oyama & Satoru Takahashi & Josef Hofbauer, 2003.
"Monotone Methods for Equilibrium Selection under Perfect Foresight Dynamics ,"
Vienna Economics Papers
0318, University of Vienna, Department of Economics.
[Downloadable!] Josef Hofbauer & Daisuke Oyama & Satoru Takahashi, 2004.
"Monotone Methods for Equilibrium Selection under Perfect Foresight Dynamics ,"
Econometric Society 2004 North American Winter Meetings
339, Econometric Society.
[Downloadable!] Daisuke Oyama & Satoru Takahashi & Josef Hofbauer, 2003.
"Monotone Methods for Equilibrium Selection under Perfect Foresight Dynamics ,"
Levine's Bibliography
666156000000000420, UCLA Department of Economics.
[Downloadable!] Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
This item is featured on the following reading lists :
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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.: Hofbauer, Josef & Sorger, Gerhard, 1999.
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Other versions: Akihiko Matsui & Kiminori Matsuyama, 1990.
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Discussion Papers
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Other versions:
Akihiko Matsui & Kiminori Matsuyama, 1991.
"An Approach to Equilibrium Selection ,"
Discussion Papers
1065, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!] Matsui, A. & Matsuyama, K., 1991.
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[Downloadable!] (restricted) Akihiko Matsui & Daisuke Oyama, 2002.
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Other versions:
David M. Frankel & Stephen Morris & Ady Pauzner, 2000.
"Equilibrium Selection in Global Games with Strategic Complementarities ,"
Econometric Society World Congress 2000 Contributed Papers
1490, Econometric Society.
[Downloadable!] David M. Frankel & Stephen Morris & Ady Pauzner, 2001.
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Cowles Foundation Discussion Papers
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Staff General Research Papers
11920, Iowa State University, Department of Economics.
Carlsson, Hans & van Damme, Eric, 1993.
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Econometrica ,
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Other versions: Kaneda Mitsuhiro, 1995.
"Industrialization under Perfect Foresight: A World Economy with a Continuum of Countries ,"
Journal of Economic Theory ,
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Morris, Stephen & Ui, Takashi, 2005.
"Generalized potentials and robust sets of equilibria ,"
Journal of Economic Theory ,
Elsevier, vol. 124(1), pages 45-78, September.
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Other versions: Gilboa, Itzhak & Matsui, Akihiko, 1991.
"Social Stability and Equilibrium ,"
Econometrica ,
Econometric Society, vol. 59(3), pages 859-67, May.
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Oyama, Daisuke, 2002.
"p-Dominance and Equilibrium Selection under Perfect Foresight Dynamics ,"
Journal of Economic Theory ,
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Kandori Michihiro & Rob Rafael, 1995.
"Evolution of Equilibria in the Long Run: A General Theory and Applications ,"
Journal of Economic Theory ,
Elsevier, vol. 65(2), pages 383-414, April.
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Matsuyama, Kiminori, 1992.
"The market size, entrepreneurship, and the big push ,"
Journal of the Japanese and International Economies ,
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Other versions: Stephen Morris & Hyun S Shin, 2001.
"Global Games: Theory and Applications ,"
Levine's Working Paper Archive
122247000000001080, David K. Levine.
[Downloadable!]
Other versions: Matsui, Akihiko & Oyama, Daisuke, 2006.
"Rationalizable foresight dynamics ,"
Games and Economic Behavior ,
Elsevier, vol. 56(2), pages 299-322, August.
[Downloadable!] (restricted)
Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993.
"Learning, Mutation, and Long Run Equilibria in Games ,"
Econometrica ,
Econometric Society, vol. 61(1), pages 29-56, January.
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Other versions: Vives, Xavier, 1990.
"Nash equilibrium with strategic complementarities ,"
Journal of Mathematical Economics ,
Elsevier, vol. 19(3), pages 305-321.
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Other versions: Athey, Susan, 2001.
"Single Crossing Properties and the Existence of Pure Strategy Equilibria in Games of Incomplete Information ,"
Econometrica ,
Econometric Society, vol. 69(4), pages 861-89, July.
Other versions: Young, H Peyton, 1993.
"The Evolution of Conventions ,"
Econometrica ,
Econometric Society, vol. 61(1), pages 57-84, January.
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Matsuyama, Kiminori, 1991.
"Increasing Returns, Industrialization, and Indeterminacy of Equilibrium ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 106(2), pages 617-50, May.
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Other versions: Josef Hofbauer & William H. Sandholm, 2002.
"On the Global Convergence of Stochastic Fictitious Play ,"
Econometrica ,
Econometric Society, vol. 70(6), pages 2265-2294, November.
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references Cited by : (explanations , 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.)
Hiroshi Uno, 2007.
"Nested Potential Games ,"
Economics Bulletin ,
Economics Bulletin, vol. 3(19), pages 1-8.
[Downloadable!]
Daijiro Okada & Olivier Tercieux, 2008.
"Log-linear Dynamics and Local Potential ,"
Economics Working Papers
0085, Institute for Advanced Study, School of Social Science.
[Downloadable!]
Oyama, Daisuke & Tercieux, Olivier, 2004.
"Iterated Potential and Robustness of Equilibria ,"
MPRA Paper
1599, University Library of Munich, Germany, revised 22 Jan 2009.
[Downloadable!]
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