GLOBAL GAMES WITH STRATEGIC SUBSTITUTES

B-Tier
Journal: International Economic Review
Year: 2021
Volume: 62
Issue: 1
Pages: 141-173

Authors (2)

Rodrigo Harrison (not in RePEc) Pedro Jara‐Moroni (not in RePEc)

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 study global games with strategic substitutes. Specifically, for a class of binary‐action, N‐player games with strategic substitutes, we prove that under payoff asymmetry, as incomplete information vanishes, the global games approach selects a unique equilibrium. We characterize this equilibrium profile ; players employ switching strategies at different cutoff signals, the order of which is directly determined by payoff asymmetry. We provide examples that illustrate our result and its connection with dominance solvability. We extend the global game literature, which has thus far been developed for games with strategic complementarities, to new applications in industrial organization, collective action problems, finance, etc .

Technical Details

RePEc Handle
repec:wly:iecrev:v:62:y:2021:i:1:p:141-173
Journal Field
General
Author Count
2
Added to Database
2026-01-25