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Equilibria with vector-valued utilities and preference information. The analysis of a mixed duopoly

Author

Listed:
  • Amparo M. Mármol

    () (Universidad de Sevilla)

  • Luisa Monroy

    () (Universidad de Sevilla)

  • M. Ángeles Caraballo

    () (Universidad de Sevilla)

  • Asunción Zapata

    () (Universidad de Sevilla)

Abstract

This paper deals with the equilibria of games when the agents have multiple objectives and, therefore, their utilities cannot be represented by a single value, but by a vector containing the various dimensions of the utility. Our approach allows the incorporation of partial information about the preferences of the agents into the model, and permits the identification of the set of equilibria in accordance with this information. We also propose an additional conservative criterion which can be applied in this framework in order to predict the results of interaction. The potential application of the theoretical results is shown with an analysis of a mixed oligopoly in which the agents value additional objectives other than their own benefit. These objectives are related to social welfare and to the profit of the industry. The flexibility of our approach provides a general theoretical framework for the analysis of a wide range of strategic economic models.

Suggested Citation

  • Amparo M. Mármol & Luisa Monroy & M. Ángeles Caraballo & Asunción Zapata, 2017. "Equilibria with vector-valued utilities and preference information. The analysis of a mixed duopoly," Theory and Decision, Springer, vol. 83(3), pages 365-383, October.
  • Handle: RePEc:kap:theord:v:83:y:2017:i:3:d:10.1007_s11238-017-9595-y
    DOI: 10.1007/s11238-017-9595-y
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    References listed on IDEAS

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    Cited by:

    1. Juho Kokkala & Kimmo Berg & Kai Virtanen & Jirka Poropudas, 2019. "Rationalizable strategies in games with incomplete preferences," Theory and Decision, Springer, vol. 86(2), pages 185-204, March.
    2. Georgios Gerasimou, 2019. "Dominance-solvable multicriteria games with incomplete preferences," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 165-171, December.
    3. Jaeok Park, 2019. "Decision Making and Games with Vector Outcomes," Working papers 2019rwp-146, Yonsei University, Yonsei Economics Research Institute.

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