Equilibrium Selection in Global Games with Strategic Substitutes
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' payoffs. 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.Download Info
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Paper provided by EconWPA in its series Game Theory and Information with number 0306003.Length: 35 pages
Date of creation: 25 Jun 2003
Date of revision:
Handle: RePEc:wpa:wuwpga:0306003
Note: Type of Document - Acrobat PDF; pages: 35
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Web page: http://128.118.178.162
Related research
Keywords: Global Games; Equilibrium Selection; Strategic Substitutes.;Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
This paper has been announced in the following NEP Reports:
- NEP-GTH-2003-07-04 (Game Theory)
- NEP-PBE-2003-07-04 (Public Economics)
References
References listed on IDEASPlease 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.:
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