Aggregate Representations of Aggregate Games

David Martimort and Lars Stole

MPRA Paper from University Library of Munich, Germany

Abstract: An aggregate game is a normal-form game with the property that each player’s payoff is a function only of his own strategy and an aggregate function of the strategy profile of all players. Aggregate games possess a set of purely algebraic properties that can often provide simple characterizations of equilibrium aggregates without first requiring that one solves for the equilibrium strategy profile. The defining nature of payoffs in an aggregate game allows one to project the n-player strategic analysis of a normal form game onto a lower-dimension aggregate-strategy space, thereby converting an n-player game to a simpler object – a self-generating single-person maximization program. We apply these techniques to a number of economic settings including competition in supply functions and multi-principal common agency games with nonlinear transfer functions.

Keywords: Aggregate games; common agency; asymmetric informa- tion; menu auctions (search for similar items in EconPapers)
JEL-codes: C72 D8 (search for similar items in EconPapers)
Date: 2011-06-23
New Economics Papers: this item is included in nep-cta, nep-gth, nep-hpe and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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