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Nash rationalization of collective choice over lotteries

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Author Info
Demuynck, Thomas
Lauwers, Luc

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Abstract

To test the joint hypothesis that players in a noncooperative game (allowing mixtures over pure strategies) consult an independent preference relation and select a Nash equilibrium, it suffices to study the reaction of the revealed collective choice upon changes in the space of strategies available to the players. The joint hypothesis is supported if the revealed choices satisfy an extended version of Richter's congruence axiom together with a contraction-expansion axiom that models the noncooperative behavior. In addition, we provide sufficient and necessary conditions for a binary relation to have an independent ordering extension, and for individual choices over lotteries to be rationalizable by an independent preference relation.

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File URL: http://www.sciencedirect.com/science/article/B6V88-4T0WJPV-1/2/af1c769cdf053b9c0a95c6898fcabc5e
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Publisher Info
Article provided by Elsevier in its journal Mathematical Social Sciences.

Volume (Year): 57 (2009)
Issue (Month): 1 (January)
Pages: 1-15
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Handle: RePEc:eee:matsoc:v:57:y:2009:i:1:p:1-15

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Web page: http://www.elsevier.com/locate/inca/505565

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Related research
Keywords: Independence condition Binary extensions Rationalizability Nash equilibrium with mixed strategies;

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This page was last updated on 2009-12-3.


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