Coalitional stochastic stability
AbstractThis paper takes the idea of coalitional behavior – groups of people occasionally acting together to their mutual benefit – and incorporates it into the framework of evolutionary game theory that underpins the social learning literature. An equilibrium selection criterion is defined which we call coalitional stochastic stability (CSS). This differs from existing work on stochastic stability in that profitable coalitional deviations are given greater importance than unprofitable single player deviations. A general characterization of CSS is given together with more detailed characterizations for specific classes of games. Applications include contracting, asymmetric social norms and collusive price setting, the latter of which is shown in some circumstances to facilitate competitive outcomes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 75 (2012)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Stochastic stability; Learning; Coalition; Lexicographic; Contract;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- BERGIN, James & LIPMAN, Bart, 1994.
"Evolution with State-Dependent Mutations,"
CORE Discussion Papers
1994055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthew O. Jackson, 2003.
"Allocation Rules for Network Games,"
Game Theory and Information
- Sung-Ha Hwang, 2011.
"Larger groups may alleviate collective action problems,"
1113, Research Institute for Market Economy, Sogang University.
- Sung Ha Hwang, 2009. "Larger groups may alleviate collective action problems," UMASS Amherst Economics Working Papers 2009-05, University of Massachusetts Amherst, Department of Economics.
- Naidu, Suresh & Hwang, Sung-Ha & Bowles, Samuel, 2010. "Evolutionary bargaining with intentional idiosyncratic play," Economics Letters, Elsevier, vol. 109(1), pages 31-33, October.
- Roberto Serrano & Oscar Volij, 2005.
"Mistakes In Cooperation: The Stochastic Stability Of Edgeworth'S Recontracting,"
Economics Working Papers
we056332, Universidad Carlos III, Departamento de Economía.
- Roberto Serrano & Oscar Volij, 2008. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economic Journal, Royal Economic Society, vol. 118(532), pages 1719-1741, October.
- Roberto Serrano & Oscar Volij, 2003. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economics Working Papers 0029, Institute for Advanced Study, School of Social Science.
- Roberto Serrano & Oscar Volij, 2003. "MISTAKE IN COOPERATION:the Stochastic Stability of Edgeworth's Recontracting," Working Papers 2003-23, Brown University, Department of Economics.
- Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993.
"Learning, Mutation, and Long Run Equilibria in Games,"
Econometric Society, vol. 61(1), pages 29-56, January.
- Kandori, M. & Mailath, G.J., 1991. "Learning, Mutation, And Long Run Equilibria In Games," Papers 71, Princeton, Woodrow Wilson School - John M. Olin Program.
- M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
- Milgrom, Paul & Shannon, Chris, 1994.
"Monotone Comparative Statics,"
Econometric Society, vol. 62(1), pages 157-80, January.
- Ambrus, Attila, 2009. "Theories of coalitional rationality," Journal of Economic Theory, Elsevier, vol. 144(2), pages 676-695, March.
- Young, H Peyton, 1998. "Conventional Contracts," Review of Economic Studies, Wiley Blackwell, vol. 65(4), pages 773-92, October.
- Iyengar, G. & Kets, W. & Sethi, R. & Bowles, S., 2008.
"Inequality and Network Structure,"
2008-76, Tilburg University, Center for Economic Research.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- E. Algaba & J. M. Bilbao & P. Borm & J. J. López, 2001. "The Myerson value for union stable structures," Mathematical Methods of Operations Research, Springer, vol. 54(3), pages 359-371, December.
- Konishi, Hideo & Ray, Debraj, 2003.
"Coalition formation as a dynamic process,"
Journal of Economic Theory,
Elsevier, vol. 110(1), pages 1-41, May.
- Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, vol. 67(1), pages 17-45, January.
- Ambrus, Attila, 2009. "Theories of Coalitional Rationality," Scholarly Articles 3204917, Harvard University Department of Economics.
- Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
- Damme, E.E.C. van & Weibull, J., 2002.
"Evolution in games with endogenous mistake probabilities,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-91438, Tilburg University.
- van Damme, Eric & Weibull, Jorgen W., 2002. "Evolution in Games with Endogenous Mistake Probabilities," Journal of Economic Theory, Elsevier, vol. 106(2), pages 296-315, October.
- Moreno, Diego & Wooders, John, 1996. "Coalition-Proof Equilibrium," Games and Economic Behavior, Elsevier, vol. 17(1), pages 80-112, November.
- Luo, Xiao & Yang, Chih-Chun, 2009. "Bayesian coalitional rationalizability," Journal of Economic Theory, Elsevier, vol. 144(1), pages 248-263, January.
- Hwang, Sung-Ha & Newton, Jonathan, 2014. "A classification of bargaining solutions by evolutionary origin," Working Papers 2014-02, University of Sydney, School of Economics, revised Apr 2014.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.