To study the equilibrium implications of strategic misoptimization, we introduce a model of costly control in continuum-player games. We find primitive conditions for binary-action and continuous-action games such that equilibria exist, are unique, are efficient, and feature monotone comparative...

This paper analyzes equilibrium and welfare for a tractable class of economies (games) with externalities, strategic complementarity or substitutability, and heterogenous information. First, we characterize the equilibrium use of information; complementarity heightens the sensitivity of...