Monotone Equilibria in Bayesian Games of Strategic Complementarities

Xavier Vives and Timothy Van Zandt ()

No 4103, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: For Bayesian games of strategic complementarities, we provide a constructive proof of the existence of a greatest and a least Bayes-Nash equilibrium - each one in strategies monotone in type - if the payoff to a player displays increasing differences in own action and the profile of types, and if the posteriors are increasing in type with respect to first-order stochastic dominance (e.g. if types are affiliated). The result holds for multidimensional action and type spaces and also for continuous and discrete type distributions. It uses an intermediate result on monotone comparative statics under uncertainty, which implies that the extremal equilibria increase when there is a first-order stochastic dominant shift in beliefs. We provide an application to strategic information revelation in games of voluntary disclosure.

Keywords: Supermodular games; Incomplete information; First-order stochastic dominance; Cournot tatônnement; Monotone comparative statics; Voluntary disclosure (search for similar items in EconPapers)
Date: 2003-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Downloads: (external link)
https://cepr.org/publications/DP4103 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Monotone equilibria in Bayesian games of strategic complementarities (2007)
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:cpr:ceprdp:4103

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP4103

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().