This paper studies potential games allowing the possibility that players have incomplete preferences and empty best-response sets. We define four notions of potential games, ordinal, generalized ordinal, best-response, and generalized best-response potential games, and characterize them using cycle conditions. We study Nash equilibria of potential games and show that the set of Nash equilibria remains the same when every player's preferences are replaced with the smallest generalized (best-response) potential relation or a completion of it. Similar results are established about strict Nash equilibria of ordinal and best-response potential games. Lastly, we examine the relations among the four notions of potential games as well as pseudo-potential games.
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- Applied Mathematics