Title

Equilibrium Selection in Global Games with Strategic Complementarities

Document Type

Discussion Paper

Publication Date

11-1-2001

CFDP Number

1336

CFDP Pages

62

Abstract

We study games with strategic complementarities, arbitrary numbers of players and actions, and slightly noisy payoff signals. We prove limit uniqueness: as the signal noise vanishes, the game has a unique strategy profile that survives iterative dominance. This generalizes a result of Carlsson and van Damme (1993) for two player, two action games. The surviving profile, however, may depend on fine details of the structure of the noise. We provide sufficient conditions on payoffs for there to be noise-independent selection.

This document is currently not available here.

Share

COinS