Renegotiation Perfection in Infinite Games
Author
Source
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-11, 11 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-02-26
Country of Publication
Egypt
No. of Pages
11
Main Subjects
Abstract EN
We study the dynamic structure of equilibria in game theory.
Allowing players in a game the opportunity to renegotiate, or switch to a feasible and Pareto superior equilibrium, can lead to welfare gains.
However, in an extensive-form game this can also make it more difficult to enforce punishment strategies, leading to the question of which equilibria are feasible after all.
This paper attempts to resolve that question by presenting the first definition of renegotiation-proofness in general games.
This new concept, the renegotiation perfect set, satisfies five axioms.
The first three axioms—namely Rationality, Consistency, and Internal Stability—characterize weakly renegotiation-proof sets.
There is a natural generalized tournament defined on the class of all WRP sets, and the final two axioms—External Stability and Optimality—pick a unique “winner” from this tournament.
The tournament solution concept employed, termed the catalog, is based on Dutta’s minimal covering set and can be applied to many settings other than renegotiation.
It is shown that the renegotiation perfection concept is an extension of the standard renegotiation-proof definition for finite games, introduced by (Benoit and Krishna 1993), and that it captures the notion of a strongly renegotiation-proof equilibrium as defined by (Farrell and Maskin 1989).
American Psychological Association (APA)
Jamison, Julian C.. 2014. Renegotiation Perfection in Infinite Games. Game Theory،Vol. 2014, no. 2014, pp.1-11.
https://search.emarefa.net/detail/BIM-495152
Modern Language Association (MLA)
Jamison, Julian C.. Renegotiation Perfection in Infinite Games. Game Theory No. 2014 (2014), pp.1-11.
https://search.emarefa.net/detail/BIM-495152
American Medical Association (AMA)
Jamison, Julian C.. Renegotiation Perfection in Infinite Games. Game Theory. 2014. Vol. 2014, no. 2014, pp.1-11.
https://search.emarefa.net/detail/BIM-495152
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-495152