A note on the equilibrium existence problem in discontinuous games
AbstractIn this note we prove an equilibrium existence theorem for games with discontinuous pay- offs and convex and compact strategy spaces. It generalizes the classical result of Reny (1999) [Econometrica 67, p. 1029-1056], as well as the recent paper of McLennan, Monteiro, and Tourky (2011) [Econometrica 79, p. 1643-1664]. Our condition is simple and easy to verify. Importantly, an example of a spatial location model shows that our conditions allow for eco- nomically meaningful payoff discontinuities, that are not covered by other conditions in the literature.
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Bibliographic InfoPaper provided by School of Economics, University of Queensland, Australia in its series Discussion Papers Series with number 467.
Date of creation: 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
- NEP-GTH-2012-06-25 (Game Theory)
- NEP-MIC-2012-06-25 (Microeconomics)
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- Tian, Guoqiang & Zhou, Jianxin, 1995. "Transfer continuities, generalizations of the Weierstrass and maximum theorems: A full characterization," Journal of Mathematical Economics, Elsevier, vol. 24(3), pages 281-303.
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