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Equilibrium Selection in Global Games with Strategic Complementarities
Economics Working Papers (2002–2016)
  • David M. Frankel, Iowa State University
  • Stephen Morris, Yale University
  • Ady Pauzner, Tel Aviv University
Document Type
Working Paper
Publication Date
1-1-2002
Abstract
We study games with strategic complementarities, arbitrary numbers of players and actions, and slightly noisy payoff signals. We prove limit uniqueness: as the signal noise vanishes, the game has a unique strategy profile that survives iterative dominance. This generalizes a result of Carlsson and van Damme (1993) for two player, two action games. The surviving profile, however, may depend on fine details of the structure of the noise. We provide sufficient conditions on payoffs for there to be noise-independent selection.
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application/pdf
Citation Information
David M. Frankel, Stephen Morris and Ady Pauzner. "Equilibrium Selection in Global Games with Strategic Complementarities" (2002)
Available at: http://works.bepress.com/david-frankel/12/