Nash equilibrium in games with quasi-monotonic best-responses

A-Tier
Journal: Journal of Economic Theory
Year: 2017
Volume: 172
Issue: C
Pages: 220-246

Authors (2)

Amir, Rabah (University of Iowa) De Castro, Luciano (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

This paper proposes a new general class of strategic games and develops an associated new existence result for pure-strategy Nash equilibrium. For a two-player game with scalar and compact action sets, existence entails that one reaction curve be increasing and continuous and the other quasi-increasing (i.e., not have any downward jumps). The latter property amounts to strategic quasi-complementarities. The paper provides a number of ancillary results of independent interest, including sufficient conditions for a quasi-increasing argmax (or non-monotone comparative statics), and new sufficient conditions for uniqueness of fixed points. For maximal accessibility of the results, the main results are presented in a Euclidean setting. We argue that all these results have broad and elementary applicability by providing simple illustrations with commonly used models in economic dynamics and industrial organization.

Technical Details

RePEc Handle
repec:eee:jetheo:v:172:y:2017:i:c:p:220-246
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24