Characterizing Monotone Games

Date

2020-03-05

Authors

Barthel, Ann-Christine
Hoffman, Eric

Journal Title

Journal ISSN

Volume Title

Publisher

WTAMU Cornette Library

Abstract

Solution concepts in games of strategic heterogeneity (GSH), which include games of strategic complements (GSC) as a special case, have been shown to possess very useful properties, such as the existence of highest and lowest serially undominated strategies, and the equivalence of the stability of equilibria and dominance solvability. The main result of this paper gives necessary and sufficient conditions for when a very general class of games, referred to as games of mixed heterogeneity (GMH), can be transformed into GSH in such a way so that these properties are preserved, allowing us to draw the same strong conclusions about solution sets in games that are not originally GSH. This is achieved by reversing the orders on the actions spaces of a given subset of players. Our second main result shows, rather surprisingly, that under mild conditions on the underlying ordering of action spaces, the reversal of orders is the only way in which such a transformation can be achieved. Applications to aggregate games, market games, and crime networks are given.

Description

We expect to find necessary and sufficient conditions on the player's payoff functions that guarantee that a game that is not a GSH can be transformed into a GSH.

Keywords

Citation

Barthel, AC. & Hoffmann, E. Characterizing Monotone Games. Economic Theory (forthcoming). https://doi.org/10.1007/s00199-019-01242-3

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