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A strategic implementation of the Average Tree solution for cycle-free graph games

  • van den Brink, René
  • van der Laan, Gerard
  • Moes, Nigel

In this note we provide a strategic implementation of the Average Tree solution for zero-monotonic cycle-free graph games. That is, we propose a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the average hierarchical outcome of the game. This mechanism takes into account that a player is only able to communicate with other players (i.e., to make proposals about a division of the surplus of cooperation) when they are connected in the graph.

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Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 148 (2013)
Issue (Month): 6 ()
Pages: 2737-2748

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Handle: RePEc:eee:jetheo:v:148:y:2013:i:6:p:2737-2748
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