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efficient equilibrium, but the less efficient equilibrium features overreactions, and welfare may then get lower than in the no … in equilibrium as a result …
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Any function from a non-empty polytope into itself that is locally gross direction preserving is shown to have the fixed point property. Brouwer's fixed point theorem for continuous functions is a special case. We discuss the application of the result in the area of non-cooperative game theory.
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with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to … investigate the robustness of equilibria to uncertainty about opponents' awareness of actions. We show that a Nash equilibrium of …
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is shown to corroborate the result in Kandori-Mailath-Rob and Young that the risk-dominant equilibrium is selected in 2 x …
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