CHARACTERIZING SOLUTIONS OF SUPERMODULAR GAMES - INTUITIVE COMPARATIVE STATICS, AND UNIQUE EQUILIBRIA

We present a technique for locating both an upper and a lower bound on equilibrium points of supermodular games by looking only at the first derivatives of the payoff functions at points of disequilibrium. This technique is useful for characterizing equilibria of games when the closed form solution is difficult to calculate, for performing comparative statics analysis, and for determining the uniqueness of equilibria.