Leadership games with convex strategy sets
AbstractA basic model of commitment is to convert a two-player game in strategic form to a "leadership game" with the same payoffs, where one player, the leader, commits to a strategy, to which the second player always chooses a best reply. This paper studies such leadership games for games with convex strategy sets. We apply them to mixed extensions of finite games, which we analyze completely, including nongeneric games. The main result is that leadership is advantageous in the sense that, as a set, the leader's payoffs in equilibrium are at least as high as his Nash and correlated equilibrium payoffs in the simultaneous game. We also consider leadership games with three or more players, where most conclusions no longer hold.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 69 (2010)
Issue (Month): 2 (July)
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Web page: http://www.elsevier.com/locate/inca/622836
Commitment Correlated equilibrium First-mover advantage Follower Leader Stackelberg game;
Other versions of this item:
- Bernhard von Stengel & Shmuel Zamir, 2010. "Leadership games with convex strategy sets," LSE Research Online Documents on Economics 27653, London School of Economics and Political Science, LSE Library.
- Bernhard von Stengel & Shmuel Zamir, 2009. "Leadership Games with Convex Strategy Sets," Discussion Paper Series dp525, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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