I characterize games for which there is an order on strategies such that the game has strategic complementarities. I prove that, with some qualifications, games with a unique equilibrium have complementarities if and only if Cournot best-response dynamics has no cycles; and that all games with multiple equilibria have complementarities. As applications of my results, I show that: (1) generic 2 x 2 games either have no pure-strategy equilibria, or have complementarities; (2) generic two-player finite ordinal potential games have complementarities. (C) 2003 Elsevier Inc. All rights reserved.
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Univ Arkansas, Dept Econ, 1 Univ Arkansas, Fayetteville, AR 72701 USA
Univ Alaska Anchorage, Dept Econ, Anchorage, AK USA
Chapman Univ, Econ Sci Inst, Orange, CA USAUniv Arkansas, Dept Econ, 1 Univ Arkansas, Fayetteville, AR 72701 USA
Deck, Cary
Sarangi, Sudipta
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Virginia Tech, Dept Econ, 880 West Campus Dr, Blacksburg, VA 24061 USA
DIW Berlin, Berlin, GermanyUniv Arkansas, Dept Econ, 1 Univ Arkansas, Fayetteville, AR 72701 USA
Sarangi, Sudipta
Wiser, Matt
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Univ S Alabama, Dept Econ & Finance, 5811 Univ Dr N, Mobile, AL 36688 USAUniv Arkansas, Dept Econ, 1 Univ Arkansas, Fayetteville, AR 72701 USA