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Dominance-Solvable Lattice Games

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Author Info
Zimper, Alexander () (Sonderforschungsbereich 504)

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Abstract

This paper derives sufficient and necessary conditions for dominance-solvability of so-called lattice games whose strategy sets have a lattice structure while they simultaneously belong to some metric space. The argument combines and extends Moulin's (1984) approach for nice games and Milgrom and Roberts' (1990) approach for supermodular games. The analysis covers - but is not restricted to - the case of actions being strategic complements as well as the case of actions being strategic substitutes. Applications are given for n-firm Cournot oligopolies, auctions with bidders who are optimistic - respectively pessimistic - with respect to an imperfectly known allocation rule, and Two-player Bayesian models of bank runs.

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Publisher Info
Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number 04-18.

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Length: 36 pages
Date of creation: 17 May 2004
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Handle: RePEc:xrs:sfbmaa:04-18

Note: I thank Jürgen Eichberger, Christian Ewerhart, Itzhak Gilboa, Alexander Ludwig, Martin Hellwig, and Paul Milgrom for helpful comments. Financial support from the Deutsche Forschungsgemeinschaft is gratefully acknowledged.
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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.:
  1. Novshek, William, 1985. "On the Existence of Cournot Equilibrium," Review of Economic Studies, Blackwell Publishing, vol. 52(1), pages 85-98, January. [Downloadable!] (restricted)
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  2. R. Guesnerie, 2002. "Anchoring Economic Predictions in Common Knowledge," Econometrica, Econometric Society, vol. 70(2), pages 439-480, March. [Downloadable!] (restricted)
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  3. Borgers, Tilman, 1993. "Pure Strategy Dominance," Econometrica, Econometric Society, vol. 61(2), pages 423-30, March. [Downloadable!] (restricted)
  4. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win, pages 14-23. [Downloadable!]
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  5. Milgrom, P. & Shannon, C., 1991. "Monotone Comparative Statics," Papers 11, Stanford - Institute for Thoretical Economics.
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Cited by:
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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!]
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