A contraction principle for finite global games (Q847869)
From MaRDI portal
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | A contraction principle for finite global games |
scientific article |
Statements
A contraction principle for finite global games (English)
0 references
19 February 2010
0 references
The main objective of this paper is to give a new proof on the uniqueness of equilibrium in a wide class of global games. This is done by showing that the best-reply mapping is weak contractive. Moreover, this contraction result provides the intuition that the noise structure in games lessens complementarities so that a unique equilibrium survives.
0 references
global game
0 references
supermodular game
0 references
equilibrium uniqueness
0 references
