supermodularity and supermodular games

Xavier Vives
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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The mathematical concept of supermodularity formalizes the idea of complementarity and opens the way for a rigorous treatment of monotone comparative statics and games with strategic complementarities. The approach is based on lattice methods and provides conditions under which optimal solutions to optimization problems change in a monotone way with a parameter. The theory of supermodular games exploits order properties to ensure that the best response of a player to the actions of rivals is increasing in their level. It yields strong results that apply to a wide range of games including dynamic games and games of incomplete information.
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How to cite this article

Vives, Xavier. "supermodularity and supermodular games." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 18 January 2018 <> doi:10.1057/9780230226203.1649

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