Comparison of equilibrium actions and payoffs across players in games of strategic complements
Lazzati, Natalia
Comparison of equilibrium actions and payoffs across players in games of strategic complements created by Natalia Lazzati - Economic theory Volume 54, number 3 .
This paper provides sufficient conditions for comparing the choices of different players in games of strategic complements. The main results require a weak ordering relation on the best responses of players in the game and their constraint sets. Under additional restrictions, we can also compare their relative payoffs. We offer three applications of our idea to industrial organization and new models of behavioral economics. Specifically, we study horizontal mergers in oligopolies, competition among firms with differentiated demands and costs of production, and a model of biased perceptions
0938-2259
Equilibrium--Strategic complements--Payoffs
Quasisupermodular games--Single-crossing property--Asymmetric equilibria
HB119 ECO
Comparison of equilibrium actions and payoffs across players in games of strategic complements created by Natalia Lazzati - Economic theory Volume 54, number 3 .
This paper provides sufficient conditions for comparing the choices of different players in games of strategic complements. The main results require a weak ordering relation on the best responses of players in the game and their constraint sets. Under additional restrictions, we can also compare their relative payoffs. We offer three applications of our idea to industrial organization and new models of behavioral economics. Specifically, we study horizontal mergers in oligopolies, competition among firms with differentiated demands and costs of production, and a model of biased perceptions
0938-2259
Equilibrium--Strategic complements--Payoffs
Quasisupermodular games--Single-crossing property--Asymmetric equilibria
HB119 ECO