UNDOMINATED EQUILIBRIA IN GAMES WITH STRATEGIC COMPLEMENTARITIES

We analyze the problem of existence of undominated pure strategy Nash equilibria in games with strategic complementarities. A Nash equilibri um is undominated if no player's equilibrium strategy is weakly domina ted by another pure strategy. We show the existence of the least and t he greatest undominated equilibrium. The equilibrium strategies of the se extremal equilibria are undominated against mixed strategies as wel l and have nice comparative statics properties. (C) 1997 Academic Pres s.