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Non-cooperative equilibrium with multiple deviators

Author

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  • Dmitry Levando

    (National Research University - Higher School of Economics, Moscow)

Abstract

The paper suggests a non-cooperative simultaneous game, with a number of potential deviators is a parameter of the game. A definition of the game embeds mechanism design. The game has an equilibrium in mixed strategies. The equilibrium encompasses intra and inter group externalities and individual payoffs that make it different from a strong Nash, coalition-proof equilibrium and some other equilibrium concepts. We offer a non-cooperative stability criterion to describe a robustness of an equilibrium strategy profile to an increase in a number of deviators. The criterium may serve as a way to measure trust for the equilibrium in terms of a number of potential deviators.

Suggested Citation

  • Dmitry Levando, 2016. "Non-cooperative equilibrium with multiple deviators," Working Papers 2016:15, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2016:15
    as

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    References listed on IDEAS

    as
    1. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
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    4. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
    5. Maskin, Eric, 2011. "Commentary: Nash equilibrium and mechanism design," Games and Economic Behavior, Elsevier, vol. 71(1), pages 9-11, January.
    6. Roberto Serrano, 2005. "Fifty years of the Nash program, 1953-2003," Investigaciones Economicas, Fundación SEPI, vol. 29(2), pages 219-258, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Non-cooperative games;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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