A Unified Approach to Equilibrium Existence in Discontinuous Strategic Games
Working paper
Issue number:
2012.40
Publisher:
Centre d’Economie de la Sorbonne
Year:
2012
Several relaxations of Nash equilibrium are shown to exist in strategic games with discontinuous
payoff functions. Those relaxations are used to extend and unify several recent results and link Reny’s
better-reply security condition [Reny, P.J. (1999). On the Existence of Pure and Mixed Strategy Nash
Equilibria in Discontinuous Games. Econometrica, 67(5), 1029-1056.] to Simon-Zame’s endogenous
tie-breaking rules [Simon, L.K. and Zame, W.R. (1990). Discontinuous Games and Endogenous
Sharing Rules. Econometrica, 58, 861-872.].