A Note on the Equilibrium Existence Problem in Discontinuous Games. Issue 2 (20th March 2013)

• Record Type: Journal Article
• Authors: Barelli, Paulo; Meneghel, Idione
• Is Part Of: Econometrica. Volume 81:Issue 2(2013:Mar.)
• Page Start: 813
• Page End: 824
• Publication Date: 2013-03-20
• Subjects: Econometrics -- Periodicals; Economics, Mathematical -- Periodicals; Economics -- Periodicals; Économétrie -- Périodiques; Mathématiques économiques -- Périodiques; Économie politique -- Périodiques; 330.05
• DOI: 10.3982/ECTA9125
• Languages: English
• ISSNs: 0012-9682

Abstract

<abstract abstract-type="main" xml:lang="en"> <title> <x xml:space="preserve">Abstract</x> </title> <p>In this note, we prove an equilibrium existence theorem for games with discontinuous payoffs and convex and compact strategy spaces. It generalizes the classical result of Reny (1999), as well as the recent paper of McLennan, Monteiro, and Tourky (2011). Our conditions are simple and easy to verify. Importantly, examples of spatial location models show that our conditions allow for economically meaningful payoff discontinuities, that are not covered by other conditions in the literature.</p> </abstract>