Consider an arbitrary two-player game with action spaces a1


Question: Consider an arbitrary two-player game with action spaces A1 = A2 = [0,1] and payoff functions that are twice continuously differentiable and concave in own action. Say that the game is locally solvable by iterated strict dominance at a* if there is a rectangle N containing a* such that when players are restricted to choosing actions in N, the successive elimination of strictly dominated strategies vields the unique point a*. Relate the conditions for local solvability by iterated strict dominance of the simultaneous-move process to those for local stability of the alternating-move Cournot adjustment process. (The answer is in Gabay and Moulin 1980).

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Management Theories: Consider an arbitrary two-player game with action spaces a1
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