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Aggregative Games

Author

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  • Martin K. Jensen
Abstract
An abstract notion of aggregative games is introduced and a pure strategy Nash equilibrium shown to exist for such games. Convergence of best-reply improvement dynamics is also studied. All assumptions are straight-forward to check in concrete applications. The paper’s results generalize the main results of Dubey et al. (2006) and Kukushkin (2005). Likewise, the aggregator concept of Alos-Ferrer and Ania (2005) and Schipper (2005) is a special case. The relationship with both is studied in detail. A number of examples illustrate the paper’s main findings. Among these a model of open source development may be of some independent interest.

Suggested Citation

  • Martin K. Jensen, 2006. "Aggregative Games," Discussion Papers 06-10, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:06-10
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    File URL: https://repec.cal.bham.ac.uk/pdf/06-10.pdf
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    Cited by:

    1. Volker Nocke & Nicolas Schutz, 2018. "Multiproduct‐Firm Oligopoly: An Aggregative Games Approach," Econometrica, Econometric Society, vol. 86(2), pages 523-557, March.
    2. Martin Jensen, 2010. "Aggregative games and best-reply potentials," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 43(1), pages 45-66, April.
    3. Acemoglu, Daron & Jensen, Martin Kaae, 2013. "Aggregate comparative statics," Games and Economic Behavior, Elsevier, vol. 81(C), pages 27-49.
    4. Kukushkin, Nikolai S., 2018. "Better response dynamics and Nash equilibrium in discontinuous games," Journal of Mathematical Economics, Elsevier, vol. 74(C), pages 68-78.
    5. Kukushkin, Nikolai S., 2016. "Nash equilibrium with discontinuous utility functions: Reny's approach extended," MPRA Paper 75862, University Library of Munich, Germany.
    6. Jayash Koshal & Angelia Nedić & Uday V. Shanbhag, 2016. "Distributed Algorithms for Aggregative Games on Graphs," Operations Research, INFORMS, vol. 64(3), pages 680-704, June.
    7. Alex Dickson, 2017. "Multiple-aggregate games," Working Papers 1701, University of Strathclyde Business School, Department of Economics.
    8. Dominik Erharter, 2013. "Promoting coordination in summary-statistic games," Working Papers 2013-28, Faculty of Economics and Statistics, Universität Innsbruck.

    More about this item

    Keywords

    Aggregative Games; Aggregation; Strategic Substitutes; Nash Equilibrium; Potential Game; Best-reply Dynamics;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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