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A Unique and Stable $$\hbox {Se}{\mathcal {C}}\hbox {ure}$$ Se C ure Reversion Protocol Improving Efficiency: A Computational Bayesian Approach for Empirical Analysis

Author

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  • Cédric Wanko

    (Université Montpellier 1)

Abstract

In Bayesian mechanism we demonstrate the unicity and the stability of secure reversion protocols in which risk-averse players have no incentive to cheat or to deviate from the meditator’s recommendation and that can greatly improve their equilibrium expected payoffs as compared to those generated through correlation device. The main idea of this work is to show the ease with which we can compute the equilibrium expected payoffs for players. Furthermore, we emphasize those results through a numerical simulation for which the method is able to be used for empirical analysis.

Suggested Citation

  • Cédric Wanko, 2018. "A Unique and Stable $$\hbox {Se}{\mathcal {C}}\hbox {ure}$$ Se C ure Reversion Protocol Improving Efficiency: A Computational Bayesian Approach for Empirical Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 52(1), pages 1-23, June.
    • Handle: RePEc:kap:compec:v:52:y:2018:i:1:d:10.1007_s10614-017-9646-z
    DOI: 10.1007/s10614-017-9646-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Revelation principle; Correlated equilibrium distribution; Collective decision process; Secure reversion protocol;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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