We prove the existence of a unique pure-strategy Nash equilibrium in nice games with isotone chain-concave best reply functions and compact strategy sets. We show a preliminary fixpoint uniqueness argument which provides sufficient assumptions on the best replies of a nice game for the existence of exactly one Nash equilibrium. Then we examine the necessity and sufficiency of the conditions on the utility functions for such assumptions to be satisfied; in particular, we find necessary and sufficient conditions for the isotonicity and concavity∖chain-concavity of best reply functions. We extend the results on Nash equilibrium uniqueness to nice games with upper unbounded strategy sets and we present “dual” results for games with isotone convex∖chain-convex best reply functions. A final extension to Bayesian games is exhibited.

Nash equilibrium uniqueness in nice games with isotone best replies / Ceparano, Maria Carmela; Quartieri, Federico. - In: JOURNAL OF MATHEMATICAL ECONOMICS. - ISSN 0304-4068. - 70:C(2017), pp. 154-165. [10.1016/j.jmateco.2017.02.011]

Nash equilibrium uniqueness in nice games with isotone best replies

Ceparano, Maria Carmela;Quartieri, Federico
2017

Abstract

We prove the existence of a unique pure-strategy Nash equilibrium in nice games with isotone chain-concave best reply functions and compact strategy sets. We show a preliminary fixpoint uniqueness argument which provides sufficient assumptions on the best replies of a nice game for the existence of exactly one Nash equilibrium. Then we examine the necessity and sufficiency of the conditions on the utility functions for such assumptions to be satisfied; in particular, we find necessary and sufficient conditions for the isotonicity and concavity∖chain-concavity of best reply functions. We extend the results on Nash equilibrium uniqueness to nice games with upper unbounded strategy sets and we present “dual” results for games with isotone convex∖chain-convex best reply functions. A final extension to Bayesian games is exhibited.
2017
Nash equilibrium uniqueness in nice games with isotone best replies / Ceparano, Maria Carmela; Quartieri, Federico. - In: JOURNAL OF MATHEMATICAL ECONOMICS. - ISSN 0304-4068. - 70:C(2017), pp. 154-165. [10.1016/j.jmateco.2017.02.011]
File in questo prodotto:
File Dimensione Formato  
2017 JME.pdf

solo utenti autorizzati

Descrizione: 2017 ME
Tipologia: Versione Editoriale (PDF)
Licenza: Copyright dell'editore
Dimensione 281.92 kB
Formato Adobe PDF
281.92 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11588/1007834
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 6
  • ???jsp.display-item.citation.isi??? 6
social impact