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Theories of coalitional rationality

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  • Ambrus, Attila

Abstract

This paper generalizes the concept of best response to coalitions of players and offers epistemic definitions of coalitional rationalizability in normal form games. The (best) response of a coalition is defined to be an operator from sets of conjectures to sets of strategies. A strategy is epistemic coalitionally rationalizable if it is consistent with rationality and common certainty that every coalition is rational. A characterization of this solution set is provided for operators satisfying four basic properties. Special attention is devoted to an operator that leads to a solution concept that is generically equivalent to the iteratively defined concept of coalitional rationalizability.

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  • Ambrus, Attila, 2009. "Theories of coalitional rationality," Journal of Economic Theory, Elsevier, vol. 144(2), pages 676-695, March.
    • Handle: RePEc:eee:jetheo:v:144:y:2009:i:2:p:676-695
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