EconPapers    
Economics at your fingertips  
 

Cournot tatonnement and Nash equilibrium in binary status games

Nikolai Kukushkin and Pierre Mouche ()
Additional contact information
Pierre Mouche: Wageningen University, The Netherlands

Economics Bulletin, 2018, vol. 38, issue 2, 1038-1044

Abstract: We study a rather simplified game model of competition for status. Each player chooses a scalar variable (say, the level of conspicuous consumption), and then those who chose the highest level obtain the "high" status, while everybody else remains with the "low" status. Each player strictly prefers the high status, but they also have intrinsic preferences over their choices. The set of all feasible choices may be continuous or discrete, whereas the strategy sets of different players can only differ in their upper and lower bounds. The resulting strategic game with discontinuous utilities does not satisfy the assumptions of any general theorem known as of today. Nonetheless, the existence of a (pure strategy) Nash equilibrium, as well as the "finite best response improvement property," are established.

Keywords: status game; Cournot tatonnement; Nash equilibrium (search for similar items in EconPapers)
JEL-codes: C7 D1 (search for similar items in EconPapers)
Date: 2018-05-25
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I2-P99.pdf (application/pdf)

Related works:
Working Paper: Cournot tatonnement and Nash equilibrium in binary status games (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-18-00095

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().

 
Page updated 2019-10-19
Handle: RePEc:ebl:ecbull:eb-18-00095