Up to now, results on the existence of Nash equilibrium have required either continuity of payoff functions or compactness of strategy sets. However, in the arbitration games FOA and DOA, neither condition is satisfied. This paper first gives a new existence result for a general game. The result is then applied to the symmetric arbitration games FOA and DOA. The conclusions of this paper generalize the main result of Zeng, Nakamura and Ibaraki (1996), that DOA leads to a convergence of offers but FOA does not. International Federation of Operational Research Societies 2001.
|Number of pages
|International Transactions in Operational Research
|Published - 2001 Sept
- Double-offer arbitration (DOA)
- Final-offer arbitration (FOA)
- Mixed-strategy Nash equilibrium