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Finance and Economics Discussion Series
Finance and Economics Discussion Series logo links to FEDS home page A Computationally Efficient Characterization of Pure Strategy Nash Equilibria in Large Entry Games
Andrew Cohen
2005-37


Abstract: This note presents a simple algorithm for characterizing the set of pure strategy Nash equilibria in a broad class of entry games. The algorithm alleviates much of the computational burden associated with recently developed econometric techniques for estimating payoff functions inferred from entry games with multiple equlibria.

Keywords: Entry games, multiple equilibria, incomplete models

Full paper (76 KB PDF)


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Last update: September 14, 2005