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The number of pure Nash equilibria in a random game with nondecreasing best responses

Satoru Takahashi

Games and Economic Behavior, 2008, vol. 63, issue 1, 328-340

Abstract: We randomly draw a game from a distribution on the set of two-player games with a given size. We compute the distribution and the expectation of the number of pure-strategy Nash equilibria of the game conditional on the game having nondecreasing best-response functions. The conditional expected number of pure-strategy Nash equilibria becomes much larger than the unconditional expected number as the size of the game grows.

Date: 2008
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