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Existence of equilibria in discontinuous Bayesian games
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Existence of equilibria in discontinuous Bayesian games

Wei He and Nicholas C. Yannelis
Journal of economic theory, Vol.162, pp.181-194
03/01/2016
DOI: 10.1016/j.jet.2015.12.009

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Abstract

We provide easily-verifiable sufficient conditions on the primitives of a Bayesian game to guarantee the existence of a behavioral-strategy Bayes-Nash equilibrium. We allow players' payoff functions to be discontinuous in actions, and illustrate the usefulness of our results via an example of an all-pay auction with general tie-breaking rules which cannot be handled by extant results. (C) 2015 Elsevier Inc. All rights reserved.
Business & Economics Economics Social Sciences

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