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

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  • Honda, Jun

Abstract

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.

Suggested Citation

  • Honda, Jun, 2011. "Noise-independent selection in global games and monotone potential maximizer: A symmetric 3×3 example," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 663-669.
  • Handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:663-669
    DOI: 10.1016/j.jmateco.2011.06.005
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    Citations

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    Cited by:

    1. Basteck, Christian & Daniëls, Tijmen R., 2011. "Every symmetric 3×3 global game of strategic complementarities has noise-independent selection," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 749-754.
    2. Honda, Jun, 2015. "Games with the Total Bandwagon Property," Department of Economics Working Paper Series 4582, WU Vienna University of Economics and Business.
    3. Harrison, Rodrigo & Jara-Moroni, Pedro, 2015. "A dominance solvable global game with strategic substitutes," Journal of Mathematical Economics, Elsevier, vol. 57(C), pages 1-11.
    4. Oyama, Daisuke & Takahashi, Satoru, 2011. "On the relationship between robustness to incomplete information and noise-independent selection in global games," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 683-688.
    5. Oyama, Daisuke & Takahashi, Satoru, 2015. "Contagion and uninvadability in local interaction games: The bilingual game and general supermodular games," Journal of Economic Theory, Elsevier, vol. 157(C), pages 100-127.
    6. Jun Honda, 2015. "Games with the Total Bandwagon Property," Department of Economics Working Papers wuwp197, Vienna University of Economics and Business, Department of Economics.

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