×

Strategic complementarities and nested potential games. (English) Zbl 1239.91022

The author studies some special class of \(n\)-person non-cooperative games \(\Gamma\) of week strategic complementarities, where the action set of one of the players is an \(m\)-dimensional Euclidean space \(\mathbb{R}^m\), the remaining players have their action sets one-dimensional \(\mathbb{R}^1\), and all the set actions are finite lattices. By definition, that property says that for each player there exists a non-decreasing selection in his best-responce correspondence. Next he introduces the definition of a nested pseudo-potential games, coming (in part) from Dubey and Haimanko. It is shown in the main theorem of the paper that game \(\Gamma\) always is a nested pseudo-potential game. Also, in several examples, some relationships between strategic complementarities, a pseudo-potential and a nested pseudo-potential are discussed.

MSC:

91A70 Spaces of games
91A06 \(n\)-person games, \(n>2\)
91A10 Noncooperative games

References:

[1] Amir, R., Supermodularity and complementarity in economics: an elementary survey, Southern Economic Journal, 71, 3, 636-660 (2005)
[2] Bulow, J.; Geanakoplos, J. D.; Klemperer, P. D., Multimarket oligopoly: strategic substitutes and complements, Journal of Political Economy, 93, 3, 488-511 (1985)
[3] Dubey, P.; Haimanko, O.; Zapechelnyuk, A., Strategic complements and substitutes, and potential games, Games and Economic Behavior, 54, 77-94 (2006) · Zbl 1129.91004
[4] Jensen, M. K., Aggregative games and best-reply potentials, Economic Theory, 43, 45-66 (2010) · Zbl 1185.91053
[5] Kajii, A.; Morris, S., The robustness of equilibria to incomplete information, Econometrica, 65, 1283-1309 (1997) · Zbl 0887.90186
[6] Kajii, A., Morris, S., 1997b. Refinements and higher order beliefs: a unified survey. Mimeo.; Kajii, A., Morris, S., 1997b. Refinements and higher order beliefs: a unified survey. Mimeo.
[7] Kukushkin, N. S., Best response dynamics in finite games with additive aggregation, Games and Economic Behavior, 48, 94-110 (2004) · Zbl 1117.91305
[8] Milgrom, P.; Roberts, J., Rationalizability, learning, and equilibrium in games with strategic complementarities, Econometrica, 58, 6, 1255-1277 (1990) · Zbl 0728.90098
[9] Milgrom, P.; Roberts, J., Comparing equilibria, American Economic Review, 84, 441-459 (1994)
[10] Monderer, D., 2007. Multipotential games. In: Twentieth International Joint Conference on Artificial Intelligence IJCAI-07, pp. 1422-1427.; Monderer, D., 2007. Multipotential games. In: Twentieth International Joint Conference on Artificial Intelligence IJCAI-07, pp. 1422-1427.
[11] Monderer, D.; Shapley, L., Potential games, Games and Economic Behavior, 14, 124-143 (1996) · Zbl 0862.90137
[12] Morris, S.; Ui, T., Best response equivalence, Games and Economic Behavior, 49, 260-287 (2004) · Zbl 1102.91006
[13] Morris, S.; Ui, T., Generalized potentials and robust sets of equilibria, Journal of Economic Theory, 124, 45-78 (2005) · Zbl 1100.91004
[14] Oyama, D.; Tercieux, O., Iterated potential and robustness of equilibria, Journal of Economic Theory, 144, 4, 1726-1769 (2009) · Zbl 1229.91214
[15] Rosenthal, R., A class of games possessing a pure strategy Nash equilibrium, International Journal of Game Theory, 2, 65-67 (1973) · Zbl 0259.90059
[16] Tarski, A., A lattice-theoretical fixpoint theorem and its applications, Pacific Journal of Mathematics, 65, 525-532 (1955)
[17] Topkis, D. M., Equilibrium points in nonzero-sum n-person submodular games, SIAM Journal on Control and Optimization, 17, 773-787 (1979) · Zbl 0433.90091
[18] Topkis, D. M., Supermodularity and Complementarity (1998), Princeton University Press
[19] Uno, H., Nested potential games, Economics Bulletin, 3, 17, 1-8 (2007)
[20] Uno, H., 2011. Nested potentials and robust equilibria. Mimeo. Available at: http://www.ecore.be/DPs/dp_1299491063.pdf; Uno, H., 2011. Nested potentials and robust equilibria. Mimeo. Available at: http://www.ecore.be/DPs/dp_1299491063.pdf
[21] Vives, X., Nash equilibrium with strategic complementarities, Journal of Mathematical Economics, 19, 305-321 (1990) · Zbl 0708.90094
[22] Vives, X., Oligopoly Pricing: Old Ideas and New Tools (1999), MIT Press
[23] Voorneveld, M., Best-response potential games, Economics Letters, 66, 289-295 (2000) · Zbl 0951.91008
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.