Robustness in Binary-Action Supermodular Games Revisited

Daisuke Oyama
Faculty of Economics, University of Tokyo

and

Satoru Takahashi
Faculty of Economics, University of Tokyo
Department of Economics, National University of Singapore


Abstract
We show that in all (whether generic or nongeneric) binary-action supermodular games, an extreme action profile is robust to incomplete information if and only if it is a monotone potential maximizer. The equivalence does not hold for nonextreme action profiles. Journal of Economic Literature Classification Numbers: C72, D82.
Key Words: Incomplete information, supermodular game, robustness, monotone potential, sequential obedience.


Forthcoming in Japanese Economic Review.
This version: June 26, 2024. PDF file