Noise-independent selection in global games and monotone potential maximizer: A symmetric 3×3 example

This note studies the relationship between the global game and the generalized potential game approaches. We provide a non-degenerate example of a symmetric 3×3 supermodular game that has no monotone potential maximizer (MP-maximizer). Since the global-game solution for symmetric 3×3 supermodular games is independent of the noise distribution, this implies that MP-maximizer is not a necessary condition for global-game noise-independent selection.

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Year of publication:	2011
Authors:	Honda, Jun
Published in:	Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 47.2011, 6, p. 663-669
Publisher:	Elsevier
Subject:	Equilibrium selection \| Global games \| Supermodular games \| Potential games \| Monotone potential

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011065475