On the existence of limit admissible equilibria in discontinuous games

C-Tier
Journal: Journal of Mathematical Economics
Year: 2019
Volume: 81
Issue: C
Pages: 14-21

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

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

Abstract

We consider the existence of limit admissible equilibria, i.e. Nash equilibria in which each player assigns zero probability to the interior of the set of his weakly dominated strategies, in (possibly) discontinuous games. We show that standard sufficient conditions for the existence of Nash equilibrium, such as better-reply security, fail to imply the existence of limit admissible equilibria. We then modify better-reply security to obtain a new condition, admissible security, and show that admissible security is sufficient for the existence of limit admissible equilibria. This result implies the existence of limit admissible equilibria in a Bertrand–Edgeworth competition setting with convex costs analogous to that of Maskin (1986).

Technical Details

RePEc Handle
repec:eee:mateco:v:81:y:2019:i:c:p:14-21
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25