IDEAS home Printed from https://ideas.repec.org/a/bla/jpbect/v9y2007i2p335-368.html
   My bibliography  Save this article

Discontinuous Payoffs, Shared Resources, and Games of Fiscal Competition: Existence of Pure Strategy Nash Equilibrium

Author

Listed:
  • PAUL ROTHSTEIN

Abstract

We define a class of games with discontinuous payoffs that we call shared resource games and establish a pure strategy Nash equilibrium existence theorem for these games. We then apply this result to a canonical game of fiscal competition for mobile capital. Other applications are also discussed. Our result for the mobile capital game holds for any finite number of regions, permits general preferences over private and public goods, and does not assume that production technologies have a particular functional form, or are identical in all regions, or satisfy the Inada condition at zero.

Suggested Citation

  • Paul Rothstein, 2007. "Discontinuous Payoffs, Shared Resources, and Games of Fiscal Competition: Existence of Pure Strategy Nash Equilibrium," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(2), pages 335-368, April.
    • Handle: RePEc:bla:jpbect:v:9:y:2007:i:2:p:335-368
    DOI: 10.1111/j.1467-9779.2007.00310.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9779.2007.00310.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9779.2007.00310.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sundaram,Rangarajan K., 1996. "A First Course in Optimization Theory," Cambridge Books, Cambridge University Press, number 9780521497190.
    2. Sundaram,Rangarajan K., 1996. "A First Course in Optimization Theory," Cambridge Books, Cambridge University Press, number 9780521497701.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    2. Kempf, Hubert & Rota-Graziosi, Grégoire, 2010. "Endogenizing leadership in tax competition," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 768-776, October.
    3. Philippe Bich & Rida Laraki, 2017. "On the Existence of approximative Equilibria and Sharing Rule Solutions in Discontinuous Games," Post-Print hal-01396183, HAL.
    4. Emmanuelle Taugourdeau & Abderrahmane Ziad, 2010. "Further Consideration of the Existence of Nash Equilibria in an Asymmetric Tax Competition Game," Post-Print halshs-00492098, HAL.
    5. Zissimos, Ben & Wooders, Myrna, 2005. "Relaxing Tax Competition through Public Good Differentation," The Warwick Economics Research Paper Series (TWERPS) 737, University of Warwick, Department of Economics.
    6. Taugourdeau, Emmanuelle & Ziad, Abderrahmane, 2011. "On the existence of Nash equilibria in an asymmetric tax competition game," Regional Science and Urban Economics, Elsevier, vol. 41(5), pages 439-445, September.
    7. Bich, Philippe & Laraki, Rida, 2017. "On the existence of approximate equilibria and sharing rule solutions in discontinuous games," Theoretical Economics, Econometric Society, vol. 12(1), January.
    8. Hubert Kempf & Grégoire Rota-Graziosi, 2010. "Endogenizing leadership in the tax competition race," Documents de travail du Centre d'Economie de la Sorbonne 10039, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    9. Philippe Bich & Rida Laraki, 2017. "On the Existence of approximative Equilibria and Sharing Rule Solutions in Discontinuous Games," PSE-Ecole d'économie de Paris (Postprint) hal-01396183, HAL.
    10. Philippe Bich & Rida Laraki, 2014. "On the Existence of Approximate Equilibria and Sharing Rule Solutions in Discontinuous Games," Working Papers hal-01071678, HAL.
    11. Rabia Nessah & Guoqiang Tian, 2016. "On the existence of Nash equilibrium in discontinuous games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(3), pages 515-540, March.
    12. Amrita Dhillon & Myrna Wooders & Ben Zissimos, 2007. "Tax Competition Reconsidered," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(3), pages 391-423, June.
    13. Nessah, Rabia & Tian, Guoqiang, 2008. "Existence of Equilibria in Discontinuous Games," MPRA Paper 41206, University Library of Munich, Germany, revised Mar 2010.
    14. Guillaume Cheikbossian, 2016. "The political economy of (De)centralization with complementary public goods," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(2), pages 315-348, August.
    15. Philippe Bich & Rida Laraki, 2014. "On the Existence of Approximate Equilibria and Sharing Rule Solutions in Discontinuous Games," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01071678, HAL.
    16. Rabia Nessah, 2013. "Weakly Continuous Security in Discontinuous and Nonquasiconcave Games: Existence and Characterization," Working Papers 2013-ECO-20, IESEG School of Management.
    17. Rabia Nessah & Guoqiang Tian, 2008. "The Existence of Equilibria in Discontinuous and Nonconvex Games," Working Papers 2008-ECO-14, IESEG School of Management, revised Mar 2010.
    18. Grégoire ROTA-GRAZIOSI & Hubert KEMPF, 2009. "Leading and losing the tax competition race," Working Papers 200921, CERDI.
    19. Rabia Nessah, 2022. "Weakly continuous security and nash equilibrium," Theory and Decision, Springer, vol. 93(4), pages 725-745, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goswami, Anindya & Rana, Nimit & Siu, Tak Kuen, 2022. "Regime switching optimal growth model with risk sensitive preferences," Journal of Mathematical Economics, Elsevier, vol. 101(C).
    2. Brett, Craig & Weymark, John A., 2016. "Voting over selfishly optimal nonlinear income tax schedules with a minimum-utility constraint," Journal of Mathematical Economics, Elsevier, vol. 67(C), pages 18-31.
    3. Gonzalez, Stéphane & Rostom, Fatma Zahra, 2022. "Sharing the global outcomes of finite natural resource exploitation: A dynamic coalitional stability perspective," Mathematical Social Sciences, Elsevier, vol. 119(C), pages 1-10.
    4. Vits, Jeroen & Gelders, Ludo & Pintelon, Liliane, 2006. "Production process changes: A dynamic programming approach to manage effective capacity and experience," International Journal of Production Economics, Elsevier, vol. 104(2), pages 473-481, December.
    5. Rasch, Alexander & Wambach, Achim, 2009. "Internal decision-making rules and collusion," Journal of Economic Behavior & Organization, Elsevier, vol. 72(2), pages 703-715, November.
    6. Sawada, Hiroyuki & Yan, Xiu-Tian, 2004. "Application of Gröbner bases and quantifier elimination for insightful engineering design," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 67(1), pages 135-148.
    7. Beltran-Royo, C. & Zhang, H. & Blanco, L.A. & Almagro, J., 2013. "Multistage multiproduct advertising budgeting," European Journal of Operational Research, Elsevier, vol. 225(1), pages 179-188.
    8. Wilson Cruz Vieira & Alberto Bucci & Simone Marsiglio, 2021. "Welfare and Convergence Speed in the Ramsey Model Under Two Classes of Gorman Preferences," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(1), pages 37-58, March.
    9. Jean-Paul Chavas, 2012. "On learning and the economics of firm efficiency: a state-contingent approach," Journal of Productivity Analysis, Springer, vol. 38(1), pages 53-62, August.
    10. Gilboa, Itzhak & Postlewaite, Andrew & Samuelson, Larry, 2016. "Memorable consumption," Journal of Economic Theory, Elsevier, vol. 165(C), pages 414-455.
    11. Benjamin E. Hermalin, 2016. "Platform-Intermediated Trade with Uncertain Quality," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(1), pages 5-29, March.
    12. Stéphane Gonzalez & Fatma Zahra Rostom, 2019. "Sharing the Global Benefits of Finite Natural Resource Exploitation: A Dynamic Coalitional Stability Perspective," Working Papers 1937, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    13. Robert W. Helsley & William C. Strange, 2014. "Coagglomeration, Clusters, and the Scale and Composition of Cities," Journal of Political Economy, University of Chicago Press, vol. 122(5), pages 1064-1093.
    14. John Duggan & Joanne Roberts, 2002. "Implementing the Efficient Allocation of Pollution," American Economic Review, American Economic Association, vol. 92(4), pages 1070-1078, September.
    15. Sergey G. Kokovin & Shamil Sharapudinov & Alexander Tarasov & Philip Ushchev, 2020. "A Theory of Monopolistic Competition with Horizontally Heterogeneous Consumers," CESifo Working Paper Series 8082, CESifo.
    16. Sridhar Moorthy, 2005. "A General Theory of Pass-Through in Channels with Category Management and Retail Competition," Marketing Science, INFORMS, vol. 24(1), pages 110-122, August.
    17. Eleftherios Filippiadis & Anastasia Litina, 2022. "A dynamic analysis of the income–pollution relationship in a two-country setting," Economic Change and Restructuring, Springer, vol. 55(2), pages 775-801, May.
    18. John Stachurski, 2009. "Economic Dynamics: Theory and Computation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012774, December.
    19. Dan Kovenock & Brian Roberson, 2021. "Generalizations of the General Lotto and Colonel Blotto games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(3), pages 997-1032, April.
    20. Sébastien Rouillon, 2012. "Decentralized Management of a Fishery," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(2), pages 181-193, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jpbect:v:9:y:2007:i:2:p:335-368. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/apettea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.