Global games with strategic complements and substitutes

B-Tier
Journal: Games and Economic Behavior
Year: 2019
Volume: 118
Issue: C
Pages: 72-93

Authors (2)

Hoffmann, Eric J. (not in RePEc) Sabarwal, Tarun (University of Kansas)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We extend the global games method to the class of finite player, finite action games that includes games with strategic complements, games with strategic substitutes, and arbitrary combinations of the two. Our result is based on common order properties present in both strategic complements and substitutes, the notion of p-dominance, and the use of dominance solvability as the solution concept. In addition to being closer to the original arguments in Carlsson and van Damme (1993), our approach requires fewer additional assumptions. In particular, we require only one dominance region, and no assumptions on state monotonicity, or aggregative structure, or overlapping dominance regions. As expected, the p-dominance condition becomes more restrictive as the number of players increases. In cases where the probabilistic burden in belief formation may be reduced, the p-dominance condition may be relaxed as well. We present examples that are not covered by existing results.

Technical Details

RePEc Handle
repec:eee:gamebe:v:118:y:2019:i:c:p:72-93
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29