Article ID Journal Published Year Pages File Type
5071709 Games and Economic Behavior 2014 10 Pages PDF
Abstract

We show that Nash equilibrium components are universal for the collection of connected polyhedral sets. More precisely for every polyhedral set we construct a so-called binary game-a game where all players have two pure strategies and a common utility function with values either zero or one-whose success set (the set of strategy profiles where the maximal payoff of one is indeed achieved) is homeomorphic to the given polyhedral set. Since compact semi-algebraic sets can be triangulated, a similar result follows for the collection of connected compact semi-algebraic sets.We discuss implications of our results for the strategic stability of success sets, and use the results to construct a Nash component with index k for any fixed integer k.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
, ,