Finance and Economics Discussion Series (FEDS)
September 2005
A Computationally Efficient Characterization of Pure Strategy Nash Equilibria in Large Entry Games
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
PDF: Full Paper
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