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Nash consistent representation of effectivity functions through lottery models

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  • Peleg, Bezalel
  • Peters, Hans

Abstract

Effectivity functions for finitely many players and alternatives are considered. It is shown that every monotonic and superadditive effectivity function can be augmented with equal chance lotteries to a finite lottery model--i.e., an effectivity function that preserves the original effectivity in terms of supports of lotteries--which has a Nash consistent representation. The latter means that there exists a finite game form which represents the lottery model and which has a Nash equilibrium for any profile of utility functions satisfying the minimal requirement of respecting first order stochastic dominance among lotteries. No additional condition on the original effectivity function is needed.

Suggested Citation

  • Peleg, Bezalel & Peters, Hans, 2009. "Nash consistent representation of effectivity functions through lottery models," Games and Economic Behavior, Elsevier, vol. 65(2), pages 503-515, March.
    • Handle: RePEc:eee:gamebe:v:65:y:2009:i:2:p:503-515
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    Cited by:

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    2. Amit Kothiyal & Vitalie Spinu & Peter P. Wakker, 2014. "Average Utility Maximization: A Preference Foundation," Operations Research, INFORMS, vol. 62(1), pages 207-218, February.
    3. Agnieszka Rusinowska, 2013. "Bezalel Peleg and Hans Peters: Strategic social choice. Stable representations of constitutions," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(2), pages 631-634, February.

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    More about this item

    Keywords

    Effectivity function Game form Nash consistent representation Lottery model;

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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