Leadership Games with Convex Strategy Sets
AbstractA basic model of commitment is to convert a two-player game in strategic form to a â€œleadership gameâ€ 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 leaderâ€™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 InfoPaper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp525.
Length: 21 pages
Date of creation: Nov 2009
Date of revision:
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-11 (All new papers)
- NEP-GTH-2009-12-11 (Game Theory)
- NEP-IND-2009-12-11 (Industrial Organization)
- NEP-MIC-2009-12-11 (Microeconomics)
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