A note on the equilibrium existence problem in discontinuous games
In this note we prove an equilibrium existence theorem for games with discontinuous pay- offs and convex and compact strategy spaces. It generalizes the classical result of Reny (1999) [Econometrica 67, p. 1029-1056], as well as the recent paper of McLennan, Monteiro, and Tourky (2011) [Econometrica 79, p. 1643-1664]. Our condition is simple and easy to verify. Importantly, an example of a spatial location model shows that our conditions allow for eco- nomically meaningful payoff discontinuities, that are not covered by other conditions in the literature.
|Date of creation:||2012|
|Contact details of provider:|| Postal: St. Lucia, Qld. 4072|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Carmona, Guilherme, 2008.
"An Existence Result for Discontinuous Games,"
FEUNL Working Paper Series
wp530, Universidade Nova de Lisboa, Faculdade de Economia.
- Tian, Guoqiang & Zhou, Jianxin, 1995. "Transfer continuities, generalizations of the Weierstrass and maximum theorems: A full characterization," Journal of Mathematical Economics, Elsevier, vol. 24(3), pages 281-303.
- Adib Bagh & Alejandro Jofre, 2006. "Reciprocal Upper Semicontinuity and Better Reply Secure Games: A Comment," Econometrica, Econometric Society, vol. 74(6), pages 1715-1721, November.
- Michael R. Baye & Guoqiang Tian & Jianxin Zhou, 1993. "Characterizations of the Existence of Equilibria in Games with Discontinuous and Non-quasiconcave Payoffs," Review of Economic Studies, Oxford University Press, vol. 60(4), pages 935-948.
- Monteiro, Paulo Klinger & Page Jr, Frank H., 2007. "Uniform payoff security and Nash equilibrium in compact games," Journal of Economic Theory, Elsevier, vol. 134(1), pages 566-575, May.
- Andrew McLennan & Paulo K. Monteiro & Rabee Tourky, 2011. "Games With Discontinuous Payoffs: A Strengthening of Reny's Existence Theorem," Econometrica, Econometric Society, vol. 79(5), pages 1643-1664, 09.
- Pavlo Prokopovych, 2011. "On equilibrium existence in payoff secure games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 48(1), pages 5-16, September.
When requesting a correction, please mention this item's handle: RePEc:qld:uq2004:467. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SOE IT)
If references are entirely missing, you can add them using this form.