EconPapers    
Economics at your fingertips  
 

Aggregate comparative statics

Daron Acemoglu and Martin Jensen ()

Games and Economic Behavior, 2013, vol. 81, issue C, 27-49

Abstract: In aggregative games, each playerʼs payoff depends on her own actions and an aggregate of the actions of all the players. Many common games in industrial organization, political economy, public economics, and macroeconomics can be cast as aggregative games. This paper provides a general and tractable framework for comparative static results in aggregative games. We focus on two classes of games: (1) aggregative games with strategic substitutes and (2) nice aggregative games, where payoff functions are continuous and concave in own strategies. We provide simple sufficient conditions under which positive shocks to individual players increase their own actions and have monotone effects on the aggregate. The results are illustrated with applications to public good provision, contests, Cournot competition and technology choices in oligopoly.

Keywords: Aggregative games; Strategic substitutes; Nice games; Comparative statics; Contests; Patent races; Public good provision; Cournot model (search for similar items in EconPapers)
JEL-codes: C60 C72 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (82) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825613000523
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Aggregate Comparative Statics (2009) 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:eee:gamebe:v:81:y:2013:i:c:p:27-49

DOI: 10.1016/j.geb.2013.03.009

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2021-02-15
Handle: RePEc:eee:gamebe:v:81:y:2013:i:c:p:27-49