Existence of equilibria in discontinuous Bayesian games

We provide easily-verifiable sufficient conditions on the primitives of a Bayesian game to guarantee the existence of a behavioral-strategy Bayes-Nash equilibrium. We allow players’ payoff functions to be discontinuous in actions, and illustrate the usefulness of our results via an example of an all-pay auction with general tie-breaking rules which cannot be handled by extant results. JEL classification: C62; C72; D82

• Type: Journal
• Year: 2016
• Where: JET
• Authors: Wei He, Nicholas C. Yannelis
• Keywords: JET 2016