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Strict pure strategy Nash equilibrium in large finite-player games when the action set is a manifold

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  • Carmona, Guilherme
  • Podczeck, Konrad

Abstract

We present results on the relationship between non-atomic games (in distributional form) and approximating games with a large but finite number of players. Specifically, in a setting with differentiable payoff functions, we show that: (1) The set of all non-atomic games has an open dense subset such that any finite-player game that is sufficiently close (in terms of distributions of players’ characteristics) to a game in this subset and has sufficiently many players has a strict pure strategy Nash equilibrium (Theorem 1), and (2) any equilibrium distribution of any non-atomic game is the limit of equilibrium distributions defined from strict pure strategy Nash equilibria of finite-player games (Theorem 2). This supplements our paper Carmona and Podczeck (2020b), where analogous results are established for the case where the action set of players is a subset of some Euclidean space, with non-empty interior, and payoff functions are such that equilibrium actions are in the interior of the action set. The goal of the present paper is to remove these assumptions.

Suggested Citation

  • Carmona, Guilherme & Podczeck, Konrad, 2022. "Strict pure strategy Nash equilibrium in large finite-player games when the action set is a manifold," Journal of Mathematical Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:mateco:v:98:y:2022:i:c:s0304406821001439
    DOI: 10.1016/j.jmateco.2021.102580
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    References listed on IDEAS

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