INTROSPECTION AND EQUILIBRIUM SELECTION IN 2x2 MATRIX GAMES

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INTROSPECTION AND EQUILIBRIUM SELECTION IN 2x2 MATRIX GAMES

Author Info

Gonzalo Olcina Vauteren () (Universitat de València)
Amparo Urbano Salvador (Universitat de València)

Abstract

Game theory lacks an explanation of how players' beliefs are formed and why they are in equilibrium. This is the reason why it has failed to make significant advances with the problem of equilibrium selection even for quite siniple games, as 2x2 games with two strict Nash equilibria. Our paper models the introspection process by which the selected equilibrium is achieved in this class of games. Players begin their analysis with imprecise priors, obtained under weak restrictions formulated as Axioms. For a large class of reasoning dynamics we obtain as the solution the risk dominant Nash equilibrium.

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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1993-01.

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Length: 60 pages
Date of creation: May 1993
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:1993-01

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Begoña Subiza & Carmen Herrero Blanco, 1991. "A Characterization Of Acyclic Preferences On Countable Sets," Working Papers. Serie AD 1991-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
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Other versions:
- Kandori, Michihiro & Mailath, George J & Rob, Rafael, 1993. "Learning, Mutation, and Long Run Equilibria in Games," Econometrica, Econometric Society, vol. 61(1), pages 29-56, January. [Downloadable!] (restricted)
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Other versions:
- Luis Corchón, 1991. "Fixed Price And Quality Signals," Working Papers. Serie AD 1991-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Antonio Villar Notario & Carmen Herrero Blanco, 1990. "Vector Mappings With Diagonal Images," Working Papers. Serie AD 1990-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Herrero, Carmen & Villar, Antonio, 1991. "Vector mappings with diagonal images," Mathematical Social Sciences, Elsevier, vol. 22(1), pages 57-67, August. [Downloadable!] (restricted)
Fernando Vega Redondo, 1991. "Competition And Culture In The Evolution Of Economic Behavior: A Simple Example," Working Papers. Serie AD 1991-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
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Luis Corchón, 1990. "Monopolistic Competition: Equilibrium And Optimality," Working Papers. Serie AD 1990-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Corchon, Luis C., 1991. "Monopolistic competition : Equilibrium and optimality," International Journal of Industrial Organization, Elsevier, vol. 9(3), pages 441-452, September. [Downloadable!] (restricted)
Javier M. López Cuñat & José Angel Silva, 1991. "First-Best, Second-Best And Principal-Agent Problems," Working Papers. Serie AD 1991-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Luis Corchón & Ignacio Ortuño Ortín, 1991. "Robust Implementation Under Alternative Information Structures," Working Papers. Serie AD 1991-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Luis Corchon & Ignacio Ortuño-Ortin, 1994. "Robust implementation under alternative information structures," Review of Economic Design, Springer, vol. 1(1), pages 159-171, December. [Downloadable!] (restricted)
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Other versions:
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Amparo Urbano & María Dolores Alepuz Domenech, 1991. "Duopoly Experimentation: Cournot And Bertrand Competition," Working Papers. Serie AD 1991-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]

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(explanations, 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.)

Nikolai S. Kukushkin, 1993. "Cournot Oligopoly With "Almost" Identical Convex Costs," Working Papers. Serie AD 1993-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Luis Corchón & Carmen Beviá Baeza, 1993. "On The Generic Impossibility Of Truthful Behavior: A Simple Approach," Working Papers. Serie AD 1993-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Bevia, Carmen & Corchon, Luis, 1995. "On the Generic Impossibility of Truthful Behavior: A Simple Approach," Economic Theory, Springer, vol. 6(2), pages 365-71, July.
Begoña Subiza Martínez, 1993. "Numerical Representation Of Acyclic Preferences," Working Papers. Serie AD 1993-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Fernando Vega Redondo, 1993. "Industrial Dynamics, Path-Dependence And Technological Change," Working Papers. Serie AD 1993-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
María Dolores Guilló, 1995. "Terms-Of-Trade And The Current Account: A Two-Country/Two-Sector Growth Model," Working Papers. Serie AD 1995-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Luis Corchón & Bhaskar Chakravorti & Simon Wilkie, 1993. "Credible Implementation," Working Papers. Serie AD 1993-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Chakravorti, B. & Corchon, L.C., 1992. "Credible Implementation," Papers 76, Bell Communications - Economic Research Group.
- Chakravorty, Bhaskar & Corchon, Luis C. & Wilkie, Simon, 2006. "Credible implementation," Games and Economic Behavior, Elsevier, vol. 57(1), pages 18-36, October. [Downloadable!] (restricted)
Carmen Herrero Blanco, 1993. "Endogenous Reference Points And The Adjusted Proportional Solution For Bargaining Problems With Claims," Working Papers. Serie AD 1993-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Carmen Herrero, 1997. "Endogenous reference points and the adjusted proportional solution for bargaining problems with claims," Social Choice and Welfare, Springer, vol. 15(1), pages 113-119. [Downloadable!] (restricted)
Luis Corchón & Andreu Mas-Colell, 1995. "A Note On Stability Of Best Reply And Gradient Systems With Applications To Imperfectly Competitive Models," Working Papers. Serie AD 1995-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Fernando Vega Redondo, 1993. "Shaping Long-Run Expectations In Problems Of Coordination," Working Papers. Serie AD 1993-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Martín Browning, 1993. "Dual Approaches To Utility," Working Papers. Serie AD 1993-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Luis Corchón & Simon Wilkie, 1995. "Implementation Of The Walrasian Correspondence By Market Games," Working Papers. Serie AD 1995-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- Carmen Bevi?Author-Email: Carmen.Bevia@uab.es & Luis C. Corch?n & Simon Wilkie, . "Implementation of the Walrasian Correspondence by Market Games," UFAE and IAE Working Papers 493.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
Miguel González-Maestre, 1993. "Divisionalization In Markets With Hetergeneous Goods," Working Papers. Serie AD 1993-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
José Alcalde, 1995. "Exchange-Proofness or Divorce-Proofness? Stability in One-Sided Matching Markets," Working Papers. Serie AD 1995-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
Other versions:
- José Alcalde, 1994. "Exchange-proofness or divorce-proofness? Stability in one-sided matching markets," Review of Economic Design, Springer, vol. 1(1), pages 275-287, December. [Downloadable!] (restricted)

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