The notion of S-modularity was developed by Glasserman and Yao [9] in
the context of optimal control of queueing networks. S-modularity allo
ws the objective function to be supermodular in some variables and sub
modular in others. It models both compatible and conflicting incentive
s, and hence conveniently accommodates a wide variety of applications.
In this paper, we introduce S-modularity into the context of n-player
noncooperative games. This generalizes the well-known supermodular ga
mes of Topkis [22], where each player maximizes a supermodular payoff
function (or equivalently, minimizes a submodular payoff function). We
illustrate the theory through a variety of applications in queueing s
ystems.