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Comparison of equilibrium actions and payoffs across players in games of strategic complements

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  • Natalia Lazzati

Abstract

This paper provides sufficient conditions for comparing the choices of different players in games of strategic complements. The main results require a weak ordering relation on the best responses of players in the game and their constraint sets. Under additional restrictions, we can also compare their relative payoffs. We offer three applications of our idea to industrial organization and new models of behavioral economics. Specifically, we study horizontal mergers in oligopolies, competition among firms with differentiated demands and costs of production, and a model of biased perceptions. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Natalia Lazzati, 2013. "Comparison of equilibrium actions and payoffs across players in games of strategic complements," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 777-788, November.
    • Handle: RePEc:spr:joecth:v:54:y:2013:i:3:p:777-788
    DOI: 10.1007/s00199-012-0736-9
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    References listed on IDEAS

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    8. Milgrom, Paul & Roberts, John, 1990. "Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities," Econometrica, Econometric Society, vol. 58(6), pages 1255-1277, November.
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    Cited by:

    1. Ying Chen & Sidartha Gordon, 2015. "Information transmission in nested sender–receiver games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(3), pages 543-569, April.
    2. repec:hal:wpspec:info:hdl:2441/5adcidkke9omt0s9p6m01j1rh is not listed on IDEAS
    3. Barthel, Anne-Christine & Hoffmann, Eric, 2017. "Comparing optimal choices with multi-dimensional action spaces," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 45-50.
    4. repec:hal:spmain:info:hdl:2441/5adcidkke9omt0s9p6m01j1rh is not listed on IDEAS

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    More about this item

    Keywords

    Quasisupermodular games; Asymmetric equilibria; Single-crossing property; C72; D03;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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