Monotone comparative statics for games with strategic substitutes

B-Tier
Journal: Journal of Mathematical Economics
Year: 2010
Volume: 46
Issue: 5
Pages: 793-806

Authors (2)

Roy, Sunanda (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

Under some conditions, parameterized games with strategic substitutes exhibit monotone comparative statics of equilibria. These conditions relate to a tradeoff between a direct parameter effect and an opposing, indirect strategic substitute effect. If the indirect effect does not dominate the direct effect, monotone comparative statics of equilibria are guaranteed. These conditions are available for best-response functions, differentiable payoff functions, and general payoff functions. Results are extended to correspondences, the analysis applies to asymmetric equilibria, and several examples are provided.

Technical Details

RePEc Handle
repec:eee:mateco:v:46:y:2010:i:5:p:793-806
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29