Coalitional stochastic stability
This paper takes the idea of coalitional behavior – groups of people occasionally acting together to their mutual benefit – and incorporates it into the framework of evolutionary game theory that underpins the social learning literature. An equilibrium selection criterion is defined which we call coalitional stochastic stability (CSS). This differs from existing work on stochastic stability in that profitable coalitional deviations are given greater importance than unprofitable single player deviations. A general characterization of CSS is given together with more detailed characterizations for specific classes of games. Applications include contracting, asymmetric social norms and collusive price setting, the latter of which is shown in some circumstances to facilitate competitive outcomes.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Young, H Peyton, 1998. "Conventional Contracts," Review of Economic Studies, Wiley Blackwell, vol. 65(4), pages 773-92, October.
- Roberto Serrano & Oscar Volij, 2005.
"Mistakes In Cooperation: The Stochastic Stability Of Edgeworth'S Recontracting,"
Economics Working Papers
we056332, Universidad Carlos III, Departamento de Economía.
- Roberto Serrano & Oscar Volij, 2008. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economic Journal, Royal Economic Society, vol. 118(532), pages 1719-1741, October.
- Roberto Serrano & Oscar Volij, 2003. "MISTAKE IN COOPERATION:the Stochastic Stability of Edgeworth's Recontracting," Working Papers 2003-23, Brown University, Department of Economics.
- Roberto Serrano & Oscar Volij, 2003. "Mistakes in Cooperation: the Stochastic Stability of Edgeworth's Recontracting," Economics Working Papers 0029, Institute for Advanced Study, School of Social Science.
- Ellison, Glenn, 2000. "Basins of Attraction, Long-Run Stochastic Stability, and the Speed of Step-by-Step Evolution," Review of Economic Studies, Wiley Blackwell, vol. 67(1), pages 17-45, January.
- James Bergin & B. L. Lipman, 1994.
"Evolution with state-dependent mutations,"
199411, School of Economics, University College Dublin.
- J. Bergin & B. Lipman, 2010. "Evolution with State-Dependent Mutations," Levine's Working Paper Archive 486, David K. Levine.
- BERGIN, James & LIPMAN, Bart, 1994. "Evolution with State-Dependent Mutations," CORE Discussion Papers 1994055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- J Bergin & B L Lipman, 1997. "Evolution with state-dependent Mutations," Levine's Working Paper Archive 771, David K. Levine.
- Ambrus, Attila, 2009. "Theories of Coalitional Rationality," Scholarly Articles 3204917, Harvard University Department of Economics.
- van Damme, Eric & Weibull, Jorgen W., 2002.
"Evolution in Games with Endogenous Mistake Probabilities,"
Journal of Economic Theory,
Elsevier, vol. 106(2), pages 296-315, October.
- van Damme, E.E.C. & Weibull, J., 2002. "Evolution in games with endogenous mistake probabilities," Other publications TiSEM 1c779ce9-9daa-4893-9ddb-e, Tilburg University, School of Economics and Management.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Moreno, Diego & Wooders, John, 1996. "Coalition-Proof Equilibrium," Games and Economic Behavior, Elsevier, vol. 17(1), pages 80-112, November.
- Kandori, M. & Mailath, G.J., 1991.
"Learning, Mutation, And Long Run Equilibria In Games,"
71, Princeton, Woodrow Wilson School - John M. Olin Program.
- 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.
- M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
- Matthew O. Jackson, 2003.
"Allocation Rules for Network Games,"
1160, California Institute of Technology, Division of the Humanities and Social Sciences.
- Sung Ha Hwang, 2009.
"Larger groups may alleviate collective action problems,"
UMASS Amherst Economics Working Papers
2009-05, University of Massachusetts Amherst, Department of Economics.
- Sung-Ha Hwang, 2011. "Larger groups may alleviate collective action problems," Working Papers 1113, Research Institute for Market Economy, Sogang University.
- Luo, Xiao & Yang, Chih-Chun, 2009. "Bayesian coalitional rationalizability," Journal of Economic Theory, Elsevier, vol. 144(1), pages 248-263, January.
- 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.
- Jackson, Matthew O. & Wolinsky, Asher, 1996.
"A Strategic Model of Social and Economic Networks,"
Journal of Economic Theory,
Elsevier, vol. 71(1), pages 44-74, October.
- Matthew O. Jackson & Asher Wolinsky, 1994. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Matthew O. Jackson & Asher Wolinsky, 1995. "A Strategic Model of Social and Economic Networks," Discussion Papers 1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Konishi, Hideo & Ray, Debraj, 2003.
"Coalition formation as a dynamic process,"
Journal of Economic Theory,
Elsevier, vol. 110(1), pages 1-41, May.
- Ambrus, Attila, 2009. "Theories of coalitional rationality," Journal of Economic Theory, Elsevier, vol. 144(2), pages 676-695, March.
- E. Algaba & J. M. Bilbao & P. Borm & J. J. López, 2001. "The Myerson value for union stable structures," Mathematical Methods of Operations Research, Springer, vol. 54(3), pages 359-371, December.
- Iyengar, G. & Kets, W. & Sethi, R. & Bowles, S., 2008.
"Inequality and Network Structure,"
2008-76, Tilburg University, Center for Economic Research.
- Milgrom, P. & Shannon, C., 1991.
"Monotone Comparative Statics,"
11, Stanford - Institute for Thoretical Economics.
- Naidu, Suresh & Hwang, Sung-Ha & Bowles, Samuel, 2010. "Evolutionary bargaining with intentional idiosyncratic play," Economics Letters, Elsevier, vol. 109(1), pages 31-33, October.
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:842-854. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.