Global games emerged as an approach to equilibrium selection. For a general setting with supermodular payoffs, unique selection of equilibrium has been obtained through iterative elimination of strictly dominated strategies. For the case of global games with strategic substitutes, uniqueness of...

We present a transit equilibrium model in which boarding decisions are stochastic. The model incorporates congestion, reflected in higher waiting times at bus stops and increasing in-vehicle travel time. The stochastic behavior of passengers is introduced through a probability for passengers to...

The concept of rationalizability has been used in the last fifteen years to study stability of equilibria in models with a continuum of agents such as competitive markets, macroeconomic dynamics and currency attacks. However, rationalizability has been formally defined in general settings only...

type="main" xml:id="ecin12106-abs-0001" In this article, we use an experiment to evaluate the performance of alternative refinements in a Myersonian link formation game with a supermodular payoff function. Our results show that a non-cooperative refinement, the global games (GG) approach,...