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Coalition Formation Under Dominance Invariance

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  • Kimya, Mert

Abstract

An abstract game satisfies Dominance Invariance if the indirect and the direct dominance relations, or myopic and farsighted dominance, are equivalent. Mauleon, Molis, Vannetelbosch, and Vergote (2014) study Dominance Invariance in match- ing problems as an attractive condition that eliminates the differences between a farsighted solution concept and its myopic counterpart. We show that Dominance Invariance can also be used to eliminate the differences between various farsighted solution concepts in any abstract game. Together with an additional condition called No Infinite Chains, Dominance Invariance implies the existence and unique- ness of the farsighted stable set, its equivalence to the largest consistent set and its equivalence to the (strong) rational expectations farsighted stable set when the latter exists. This also implies that both the farsighted stable set and the largest consistent set do not su er from the problem of maximality under these conditions.

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  • Kimya, Mert, 2021. "Coalition Formation Under Dominance Invariance," Working Papers 2021-06, University of Sydney, School of Economics.
    • Handle: RePEc:syd:wpaper:2021-06
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    Keywords

    Farsighted stability; Coalitional games; Farsighted stable set; Largest Consistent Set;
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