THE DISCRETIZATION OF CONTINUUM STRATEGY SPACES

摘要

When the strategy set of a game is a continuum, its discretization may not conserve local properties even for arbitrarily fine strategy grids. This paper provides two technical lemmata which are useful to deal with these problems in particular contexts. Four applications are presented, regarding the discretization of Cournot and Bertrand oligopolies, a consumer optimization problem, and an insurance market.