This paper shows that asynchronicity of moves can lead to a unique prediction in coordination games, in an infinite-horizon setting, under certain conditions on off-equilibrium payoffs. In two-player games we derive necessary and sufficient conditions for play ultimately being absorbed in the Pareto dominant Nash equilibrium of the stage game, for every Markov perfect equilibrium. For players p...

Goeree & Holt (2001) observe that, for some parameter values, Nash equilibrium provides good predictions for actual behaviour in experiments. For other payoff parameters, however, actual behaviour deviates consistently from that predicted by Nash equilibria. They attribute the robust deviations from Nash equilibrium to actual players' considering not only marginal gains and losses but also tota...

This paper presents a game theoretic analysis of the generalized second price auction that Yahoo operates to sell sponsored search listings on its search engine. We present results that indicate that this auction has a multiplicity of Nash equilibria. We also show that weak dominance arguments do not in general select a unique Nash equilibrium. We then analyze bid data assuming that advertisers...

We introduce a procedure that uses basic topological characteristics of equilibrium correspondences of standard equilibrium concepts, to define broad equivalence classes of finite generic games in normal form. The proposed procedure is viewed as a potentially useful way of both organizing the underlying spaces of games as well as of comparing different equilibrium concepts with each other. The ...

Multi-store ...rms are common in the retailing industry. Theory suggests that cross-elasticities between stores of the same ...rm enhance market power. To evaluate the importance of this e¤ect in the UK supermarket industry, we estimate a model of consumer choice and expenditure using three data sources: pro...t margins for each chain, a survey of consumer choices, and a data set of store chara...

The problem of setting route directives in a motorway network is formulated as a dynamic game problem. After restricting attention to a Nash equilibrium, a search procedure for such an equilibrium is proposed.

The goal of this paper is to study a stochastic game connected to a system of forward backward stochastic differential equations (FBSDEs) involving delay and noisy memory. We derive sufficient and necessary maximum principles for a set of controls for the players to be a Nash equilibrium in the game. Furthermore, we study a corresponding FBSDE involving Malliavin derivatives. This kind of equat...

This note studies the following question: If a researcher is given a finitely supported mixed strategy for each player over a continuous strategy space, does there exist a game whose unique Nash equilibrium is given by these mixed strategies? This note finds that any set of finitely supported mixed strategies on metric spaces can be represented as the unique Nash equilibrium to a separable game...

We consider a market game with a continuum of consumers, where the measure of each type is stochastic. Nature selects the set of active consumers, who make bids and o¤ers on ` ¡ 1 spot market trading posts. Existence of type-symmetric Nash equilibrium is proven. When facing price uncertainty, best responses are unique, and a Nash equilibrium to the sell-all game is typically not a Nash equilibr...

We propose a new concept for how to make choices in games without assuming an equilibrium. To beat the average means to obtain a higher payoff against the others than the others obtain amongst themselves, for any way in which the game might be played. Only Nash equilibrium strategies can beat the average. Beating the average is possible in many symmetric games, including Cournot competition wit...