Extremal Choice Equilibrium: Existence and Purification with Infinite-Dimensional Externalities
We prove existence and purification results for equilibria in which players choose extreme points of their feasible actions in a class of strategic environments exhibiting a product structure. We assume finite-dimensional action sets and allow for infinite-dimensional externalities. Applied to large games, we obtain existence of Nash equilibrium in pure strategies while allowing a continuum of groups and general dependence of payoffs on average actions across groups, without resorting to saturated measure spaces. Applied to games of incomplete information, we obtain a new purification result for Bayes-Nash equilibria that permits substantial correlation across types, without assuming conditional independence given the realization of a finite environmental state. We highlight our results in examples of industrial organization, auctions, and voting.
|Date of creation:||Oct 2011|
|Contact details of provider:|| Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.|
References listed on IDEAS
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- David McAdams, 2006. "Monotone Equilibrium in Multi-Unit Auctions," Review of Economic Studies, Oxford University Press, vol. 73(4), pages 1039-1056.
- Khan, M. Ali & Rath, Kali P. & Sun, Yeneng, 1997.
"On the Existence of Pure Strategy Equilibria in Games with a Continuum of Players,"
Journal of Economic Theory,
Elsevier, vol. 76(1), pages 13-46, September.
- M Ali Khan & Kali P Rath & Yeneng Sun, 1994. "On the Existence of Pure Strategy Equilibria in Games with a Continuum of Players," Economics Working Paper Archive 381, The Johns Hopkins University,Department of Economics, revised Feb 1997.
- Balder E. J. & Rustichini A., 1994. "An Equilibrium Result for Games with Private Information and Infinitely Many Players," Journal of Economic Theory, Elsevier, vol. 62(2), pages 385-393, April.
- Rath, Kali P, 1992. "A Direct Proof of the Existence of Pure Strategy Equilibria in Games with a Continuum of Players," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 2(3), pages 427-433, July.
- M. Khan & Kali Rath & Yeneng Sun, 2006. "The Dvoretzky-Wald-Wolfowitz theorem and purification in atomless finite-action games," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(1), pages 91-104, April.
- Filipe Martins-da-Rocha, V. & Topuzu, Mihaela, 2008. "Cournot-Nash equilibria in continuum games with non-ordered preferences," Journal of Economic Theory, Elsevier, vol. 140(1), pages 314-327, May.
- Balder, Erik J., 2002. "A Unifying Pair of Cournot-Nash Equilibrium Existence Results," Journal of Economic Theory, Elsevier, vol. 102(2), pages 437-470, February. Full references (including those not matched with items on IDEAS)
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