Symmetry-breaking in two-player games via strategic substitutes and diagonal nonconcavity: A synthesis

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 5
Pages: 1968-1986

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

This paper is an attempt to develop a unified approach to symmetry-breaking in strategic models arising in industrial organization by constructing two general classes of two-player symmetric games that always possess only asymmetric pure-strategy Nash equilibria. These classes of games are characterized in some abstract sense by two general properties: payoff nonconcavities and some form of strategic substitutability. Our framework relies on easily verified assumptions on the primitives of the game, and relies on the theory of supermodular games. The underlying natural assumptions are satisfied in a number of two-stage models with an investment decision preceding product market competition. To illustrate the generality and wide scope for application of our approach, we present some existing models dealing with R&D, capacity expansion and information provision, which motivated this study.

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:5:p:1968-1986
Journal Field
Theory
Author Count
3
Added to Database
2026-01-24