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Games with the Total Bandwagon Property

Honda, Jun (2015) Games with the Total Bandwagon Property. Department of Economics Working Paper Series, 197. WU Vienna University of Economics and Business, Vienna.

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Abstract

We consider the class of two-player symmetric n x n games with the total bandwagon property (TBP) introduced by Kandori and Rob (1998). We show that a game has TBP if and only if the game has 2^n - 1 symmetric Nash equilibria. We extend this result to bimatrix games by introducing the generalized TBP. This sheds light on the (wrong) conjecture of Quint and Shubik (1997) that any n x n bimatrix game has at most 2^n - 1 Nash equilibria. As for an equilibrium selection criterion, I show the existence of a ½-dominant equilibrium for two subclasses of games with TBP: (i) supermodular games; (ii) potential games. As an application, we consider the minimum-effort game, which does not satisfy TBP, but is a limit case of TBP. (author's abstract)

Item Type: Paper
Keywords: Bandwagon / Nash Equilibrium / Number of Equilibria / Coordination Game / Equilibrium Selection
Classification Codes: JEL C62, C72, C73
Divisions: Departments > Volkswirtschaft
Depositing User: Claudia Tering-Raunig
Date Deposited: 13 Jul 2015 14:01
Last Modified: 13 Jul 2015 14:01
URI: http://epub.wu.ac.at/id/eprint/4582

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