Publication: Ordinal potentials in smooth games
Ordinal potentials in smooth games
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Ewerhart, C. (2020). Ordinal potentials in smooth games. Economic Theory, 70, 1069–1100. https://doi.org/10.1007/s00199-020-01257-1
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In the class of smooth non-cooperative games, exact potential games and weighted potential games are known to admit a convenient characterization in terms of crossderivatives (Monderer and Shapley in Games Econ Behav 14:124–143, 1996a). However, no analogous characterization is known for ordinal potential games. The present paper derives necessary conditions for a smooth game to admit an ordinal potential. First, any ordinal potential game must exhibit pairwise strategic complements or substitutes at any interior equilibrium. Second,
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Citations
Ewerhart, C. (2020). Ordinal potentials in smooth games. Economic Theory, 70, 1069–1100. https://doi.org/10.1007/s00199-020-01257-1
