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Simultaneous and sequential choice in a symmetric two-player game with canyon-shaped payoffs

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  • Chia-Hung Sun

    (Soochow University)

Abstract

This paper investigates a symmetric two-player game with canyon-shaped payoffs, in which a player’s payoff function is smooth and concave above and below the diagonal, but not differentiable on the diagonal. We demonstrate that there exists a first-mover advantage when the two players move sequentially and a player’s preference to the opponent’s choice is monotonic and identical between a higher strategy player and a lower strategy player. We also show that our symmetric two-player game may yield the first-mover advantage outcome in an endogenous timing game with observable delay.

Suggested Citation

  • Chia-Hung Sun, 2020. "Simultaneous and sequential choice in a symmetric two-player game with canyon-shaped payoffs," The Japanese Economic Review, Springer, vol. 71(2), pages 191-219, April.
    • Handle: RePEc:spr:jecrev:v:71:y:2020:i:2:d:10.1007_s42973-019-00011-0
    DOI: 10.1007/s42973-019-00011-0
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    More about this item

    Keywords

    Simultaneous game; Sequential game; Endogenous timing; Strategic complements; Strategic substitutes;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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