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The number of pure Nash equilibria in a random game with nondecreasing best responses
Authors:Satoru Takahashi  
Institution:aDepartment of Economics, Princeton University, Princeton, NJ 08544-1021, USA
Abstract:We randomly draw a game from a distribution on the set of two-player games with a given size. We compute the distribution and the expectation of the number of pure-strategy Nash equilibria of the game conditional on the game having nondecreasing best-response functions. The conditional expected number of pure-strategy Nash equilibria becomes much larger than the unconditional expected number as the size of the game grows.
Keywords:Number of Nash equilibria  Random game  Strategic complementarity  Increasing difference  Single crossing
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