Exploiting homogeneity in games with non-homogeneous revenue functions

Abstract

AbstractWe exploit the properties of homogeneous functions to characterize the symmetric pure-strategy Nash equilibria of n-player symmetric games in which each player’s revenue function is not homogeneous but it can be decomposed into the sum of homogeneous functions with different degrees of homogeneity. Our results aim to provide a pathway for an easy computation of symmetric equilibria for this type of games. We discuss our results in a Cournot game, a contest game, and a public good game.