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Stackelberg Assumption vs. Nash Assumption in Partially Cooperative Games

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  • Lina Mallozzi

    ()
    (University of Naples Federico II, Department of Mathematics and Applications, Naples, Italy)

  • Stef Tijs

    ()
    (University of Tilburg, CentER and Department of Econometrics and Operations Research, Tilburg, The Netherlands)

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    Abstract

    We deal with n-person normal form games where a subset of players decide to cooperate (signatories) and choose strategies by maximizing the aggregate welfare of the coalition members as in International Environmental Agreements (IEA) context. The non-cooperating (non-signatories) players choose their strategies as a Nash equilibrium. In this paper the partial cooperative equilibrium (PCE) under the Nash-Cournot and the Stackelberg assumptions are considered and presented also in the case of non-signatories multiple decision. Some properties are discussed in both situations, particularly the profit of the players are compared.

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    Bibliographic Info

    Article provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its journal Czech Economic Review.

    Volume (Year): 6 (2012)
    Issue (Month): 1 (March)
    Pages: 5-13

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    Handle: RePEc:fau:aucocz:au2012_005

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    Related research

    Keywords: Partial cooperation; Stackelberg assumption; Nash-Cournot assumption; Stackelberg leader’s value;

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    References

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    1. Subhadip Chakrabarti & Robert Gilles & Emiliya Lazarova, 2011. "Strategic behavior under partial cooperation," Theory and Decision, Springer, vol. 71(2), pages 175-193, August.
    2. Ray, D. & Vohra, R., 1993. "Equilibrium Binding Agreements," Papers 21, Boston University - Department of Economics.
    3. Carraro, Carlo & Siniscalco, Domenico, 1992. "The international dimension of environmental policy," European Economic Review, Elsevier, vol. 36(2-3), pages 379-387, April.
    4. Elena Denisova & Andrey Garnaev, 2008. "Fish Wars: Cooperative and Non-Cooperative Approaches," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(1), pages 028-040, March.
    5. Beaudry, Paul & Cahuc, Pierre & Kempf, Hubert, 2000. " Is It Harmful to Allow Partial Cooperation?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 1-21, March.
    6. Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
    7. Amir, Rabah & Grilo, Isabel, 1999. "Stackelberg versus Cournot Equilibrium," Games and Economic Behavior, Elsevier, vol. 26(1), pages 1-21, January.
    8. Lina Mallozzi & Stef Tijs, 2009. "Coordinating choice in partial cooperative equilibrium," Economics Bulletin, AccessEcon, vol. 29(2), pages 1459-1465.
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