Domain L-Majorization and Equilibrium Existence in Discontinuous Games
Year:
2010Published in:
SSRNWe study the equilibrium existence problem in normal form and qualitative games in which it is possible to associate with each nonequilibrium point an open neighborhood and a collection of deviation strategies such that, at any nonequilibrium point of the neighborhood, a player can increase her payoff by switching to the deviation strategy designated for her. An equilibrium existence theorem for compact, quasiconcave games with two players is established. We propose a new form of the better-reply security condition, called the strong single deviation property, that covers games whose set of Nash equilibria is not necessarily closed. We introduce domain L-majorized correspondences and use them to study equilibrium existence in qualitative games.