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A Note on the Equilibrium Existence Problem in Discontinuous Games
Authors:Paulo Barelli  Idione Meneghel
Abstract:In this note, we prove an equilibrium existence theorem for games with discontinuous payoffs and convex and compact strategy spaces. It generalizes the classical result of Reny (1999), as well as the recent paper of McLennan, Monteiro, and Tourky (2011). Our conditions are simple and easy to verify. Importantly, examples of spatial location models show that our conditions allow for economically meaningful payoff discontinuities, that are not covered by other conditions in the literature.
Keywords:Nash equilibrium  discontinuous payoffs  better reply security  location games
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