Abstract

We study global games with strategic substitutes. Specifically, for a class of binary-action, N-player games with strategic substitutes, we prove that under commonly known payoff asymmetry, as incomplete information vanishes, the global games approach selects a unique equilibrium. We provide a full characterization of this equilibrium profile; players employ switching strategies at different cutoff signals, the order of which is directly determined by payoff asymmetry. We also provide simple examples that illustrate our result and the connection with dominance solvability. Our work extends the global game literature, which has thus far been developed for games with strategic complementarities, to new applications in industrial organization, collective action problems, finance, etc.