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Noise-independent selection in global games and monotone potential maximizer: A symmetric 3×3 example

  • Honda, Jun
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    This note studies the relationship between the global game and the generalized potential game approaches. We provide a non-degenerate example of a symmetric 3×3 supermodular game that has no monotone potential maximizer (MP-maximizer). Since the global-game solution for symmetric 3×3 supermodular games is independent of the noise distribution, this implies that MP-maximizer is not a necessary condition for global-game noise-independent selection.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0304406811000590
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    Article provided by Elsevier in its journal Journal of Mathematical Economics.

    Volume (Year): 47 (2011)
    Issue (Month): 6 ()
    Pages: 663-669

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    Handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:663-669
    Contact details of provider: Web page: http://www.elsevier.com/locate/jmateco

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