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When does restricting your opponent's freedom hurt you?

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  • Pei, Harry Di

Abstract

I examine the payoff consequences for a player when she removes a subset of her opponent's actions before playing a two-player complete information normal form game. When she faces a constraint on the maximal number of actions she can remove, she can be strictly better off by not removing any actions. I present such an example. I also establish sufficient conditions under which removing opponent's actions cannot hurt. As a corollary, I also characterize a necessary condition for a player's optimal Nash Equilibrium in games with generic payoffs when her opponent has strictly more actions than she does.

Suggested Citation

  • Pei, Harry Di, 2016. "When does restricting your opponent's freedom hurt you?," Games and Economic Behavior, Elsevier, vol. 100(C), pages 234-239.
    • Handle: RePEc:eee:gamebe:v:100:y:2016:i:c:p:234-239
    DOI: 10.1016/j.geb.2016.10.004
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    References listed on IDEAS

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    1. Romano, Richard & Yildirim, Huseyin, 2005. "On the endogeneity of Cournot-Nash and Stackelberg equilibria: games of accumulation," Journal of Economic Theory, Elsevier, vol. 120(1), pages 73-107, January.
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    More about this item

    Keywords

    Normal form game; Restricting freedom; Carathéodory's Theorem;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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