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Representation of Effectivity Functions in Coalition Proof Nash Equilibrium: A Complete Characterization

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Author Info

  • Hans Keiding

    (Institute of Economics, University of Copenhagen)

  • Bezalel Peleg

    (Hebrew University of Jerusalem)

Abstract

The concept of coalition proof Nash equilibrium was introduced by Bernheim, Peleg, and Whinston [1987]. In the present paper, we consider the representation problem for coalition proof Nash equilibrium: For a given effectivity function, describing the power structure or the system of rights of coalitions in society, it is investigated whether there is a game form which gives rise to this effectivity function and which is such that for any preference assignment, there is a coalition proof Nash equilibrium. It is shown that the effectivity functions which can be represented in coalition proof Nash equilibrium are exactly those which satisfy the well-known properties of maximality and superadditivity. As a corollary of the result, we obtain necessary conditions for implementation of a social choice correspondence in coalition proof Nash equilibrium which can be formulated in terms of the associated effectivity function.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 99-21.

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Length: 23 pages
Date of creation: Mar 1999
Date of revision:
Handle: RePEc:kud:kuiedp:9921

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Keywords: effectivity functions; representation; coalition proof; Nash equilibrium;

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Cited by:
  1. Hans Keiding & Bezalel Peleg, 2003. "On the Continuity of Representations of Effectivity Functions," Discussion Paper Series dp324, The Center for the Study of Rationality, Hebrew University, Jerusalem.
  2. Hans Keiding & Bezalel Peleg, 2006. "Binary effectivity rules," Review of Economic Design, Springer, vol. 10(3), pages 167-181, December.

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