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Expectation formation rules and the core of partition function games

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  • Bloch, Francis
  • van den Nouweland, Anne

Abstract

This paper proposes axiomatic foundations of expectation formation rules, by which deviating players anticipate the reaction of external players in a partition function game. The projection rule is the only rule satisfying subset consistency and responsiveness to the original partition of non-deviating players. It is also the only rule satisfying subset consistency, independence of the original partition of deviating players, and coherence of expectations. Exogenous rules are the only rules satisfying subset consistency and independence of the original partition, and the pessimistic rule is the only rule generating superadditive coalitional games.

Suggested Citation

  • Bloch, Francis & van den Nouweland, Anne, 2014. "Expectation formation rules and the core of partition function games," Games and Economic Behavior, Elsevier, vol. 88(C), pages 339-353.
    • Handle: RePEc:eee:gamebe:v:88:y:2014:i:c:p:339-353
    DOI: 10.1016/j.geb.2014.10.012
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    More about this item

    Keywords

    Partition function games; Core; Expectation formation; Axiomatization;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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