Variational convergence: Approximation and existence of equilibria in discontinuous games

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 3
Pages: 1244-1268

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

We introduce a notion of variational convergence for sequences of games and we show that the Nash equilibrium map is upper semi-continuous with respect to variationally converging sequences. We then show that for a game G with discontinuous payoff, some of the most important existence results of Dasgupta and Maskin, Simon, and Reny are based on constructing approximating sequences of games that variationally converge to G. In fact, this notion of convergence will help simplify these results and make their proofs more transparent. Finally, we use our notion of convergence to establish the existence of a Nash equilibrium for Bertrand-Edgeworth games with very general forms of tie-breaking and residual demand rules.

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:3:p:1244-1268
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24