2002RePEc: Research Papers in EconomicsRequires access

Strategic Substitutes and Potential Games

Pradeep Dubey, Andriy Zapechelnyuk

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Abstract

We show that games of strategic substitutes (or complements) with aggregation are "pseudo-potential" games, and therefore possess Nash equilibria in pure strategies. Our notion of aggregation is quite general and enables us to take a unified view of several disparate models.

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We show that games of strategic substitutes (or complements) with aggregation are "pseudo-potential" games, and therefore possess Nash equilibria in pure strategies. Our notion of aggregation is quite general and enables us to take a unified view of several disparate models.

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Available abstract

We show that games of strategic substitutes (or complements) with aggregation are "pseudo-potential" games, and therefore possess Nash equilibria in pure strategies. Our notion of aggregation is quite general and enables us to take a unified view of several disparate models.

Key concepts: Strategic complements, Nash equilibrium, Mathematical economics, Economics, Microeconomics, Computer science

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