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Aggregate Representations of Aggregate Games

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  • Martimort, David
  • Stole, Lars

Abstract

An aggregate game is a normal-form game with the property that each player’s payoff is a function only of his own strategy and an aggregate function of the strategy profile of all players. Aggregate games possess a set of purely algebraic properties that can often provide simple characterizations of equilibrium aggregates without first requiring that one solves for the equilibrium strategy profile. The defining nature of payoffs in an aggregate game allows one to project the n-player strategic analysis of a normal form game onto a lower-dimension aggregate-strategy space, thereby converting an n-player game to a simpler object – a self-generating single-person maximization program. We apply these techniques to a number of economic settings including competition in supply functions and multi-principal common agency games with nonlinear transfer functions.

Suggested Citation

  • Martimort, David & Stole, Lars, 2011. "Aggregate Representations of Aggregate Games," MPRA Paper 32871, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32871
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    File URL: https://mpra.ub.uni-muenchen.de/32871/1/MPRA_paper_32871.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Martimort, David & Stole, Lars, 2011. "Public Contracting in Delegated Agency Games," MPRA Paper 32874, University Library of Munich, Germany.
    2. Harks, Tobias & Klimm, Max, 2015. "Equilibria in a class of aggregative location games," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 211-220.
    3. Camille Cornand & Rodolphe Dos Santos Ferreira, 2015. "Playing the game the others want to play: Keynes’ beauty contest revisited," Working Papers of BETA 2015-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    4. Martimort, David & Stole, Lars, 2011. "The Collective Wisdom of Beauty Contests," MPRA Paper 32872, University Library of Munich, Germany.
    5. André De Palma & Soumyanetra Munshi, 2012. "Multi-player, Multi-prize, Imperfectly Discriminating Contests," Working Papers hal-00683688, HAL.
    6. Matthew Gentzkow & Emir Kamenica, 2011. "Competition in Persuasion," NBER Working Papers 17436, National Bureau of Economic Research, Inc.
    7. Zubrickas, Robertas, 2014. "The provision point mechanism with refund bonuses," Journal of Public Economics, Elsevier, vol. 120(C), pages 231-234.

    More about this item

    Keywords

    Aggregate games; common agency; asymmetric informa- tion; menu auctions;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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