On the existence of pure strategy equilibria in large generalized games with atomic players
AbstractWe consider a game with a continuum of players where only a finite number of them are atomic. Objective functions and admissible strategies may depend on the actions chosen by atomic players and on aggregate information about the actions chosen by non-atomic players. Only atomic players are required to have convex sets of admissible strategies and quasi-concave objective functions. We prove the existence of a pure strategy Nash equilibria. Thus, we extend to large generalized games with atomic players the results of equilibrium existence for non-atomic games of Schemeidler (1973) and Rath (1992). We do not obtain a pure strategy equilibrium by purification of mixed strategy equilibria. Thus, we have a direct proof of both Balder (1999, Theorem 2.1) and Balder (2002, Theorem 2.2.1), for the case where non-atomic players have a common non-empty set of strategies and integrable bounded codification of action profiles. Our main result is readily applicable to many interesting problems in general equilibrium. As an application, we extend Aumann (1966) result on the existence of equilibrium with a continuum of traders to a standard general equilibrium model with incomplete asset markets.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36626.
Date of creation: Jan 2012
Date of revision:
Generalized games; Non-convexities; Pure-strategy Nash equilibrium;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
- NEP-GTH-2012-02-20 (Game Theory)
- NEP-MIC-2012-02-20 (Microeconomics)
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.:
- Balder, Erik J., 2002. "A Unifying Pair of Cournot-Nash Equilibrium Existence Results," Journal of Economic Theory, Elsevier, vol. 102(2), pages 437-470, February.
- Aumann, Robert J., 1976. "An elementary proof that integration preserves uppersemicontinuity," Journal of Mathematical Economics, Elsevier, vol. 3(1), pages 15-18, March.
- Balder, Erik J., 1999. "On the existence of Cournot-Nash equilibria in continuum games," Journal of Mathematical Economics, Elsevier, vol. 32(2), pages 207-223, October.
- Rath, Kali P, 1992. "A Direct Proof of the Existence of Pure Strategy Equilibria in Games with a Continuum of Players," Economic Theory, Springer, vol. 2(3), pages 427-33, July.
- Correa, Sofía & Torres-Martínez, Juan Pablo, 2012. "Essential stability for large generalized games," MPRA Paper 36625, University Library of Munich, Germany.
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