Differential information in large games with strategic complementarities

B-Tier
Journal: Economic Theory
Year: 2015
Volume: 59
Issue: 1
Pages: 201-243

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study equilibrium in large games of strategic complementarities (GSC) with differential information. We define an appropriate notion of distributional Bayesian Nash equilibrium and prove its existence. Furthermore, we characterize order-theoretic properties of the equilibrium set, provide monotone comparative statics for ordered perturbations of the space of games, and provide explicit algorithms for computing extremal equilibria. We complement the paper with new results on the existence of Bayesian Nash equilibrium in the sense of Balder and Rustichini (J Econ Theory 62(2):385–393, 1994 ) or Kim and Yannelis (J Econ Theory 77(2):330–353, 1997 ) for large GSC and provide an analogous characterization of the equilibrium set as in the case of distributional Bayesian Nash equilibrium. Finally, we apply our results to riot games, beauty contests, and common value auctions. In all cases, standard existence and comparative statics tools in the theory of supermodular games for finite numbers of agents do not apply in general, and new constructions are required. Copyright The Author(s) 2015

Technical Details

RePEc Handle
repec:spr:joecth:v:59:y:2015:i:1:p:201-243
Journal Field
Theory
Author Count
4
Added to Database
2026-01-24