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Equilibrium existence and uniqueness in network games with additive preferences
Authors:Yann Rébillé  Lionel Richefort
Institution:Laboratoire d’Economie et de Management de Nantes-Atlantique (LEMNA), Université de Nantes, France
Abstract:A directed network game of imperfect strategic substitutes with heterogeneous players is analyzed. We consider concave additive separable utility functions that encompass the quasi-linear ones. It is found that pure strategy Nash equilibria verify a non-linear complementarity problem. By requiring appropriate concavity in the utility functions, the existence of an equilibrium point is shown and equilibrium uniqueness is established with a P-matrix. For this reason, it appears that previous findings on network structure and sparsity hold for many more games.
Keywords:Network game  Additive preferences  Complementarity problem  P-matrix
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