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Stability of the cooperative equilibrium in N -person prisoners' dilemma with sequential moves

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  • Ko Nishihara

    () (Faculty of Economics, Fukuoka University, Nanakuma, Jonan-ku, Fukuoka 814-80, JAPAN)

Abstract

Nishihara [3] showed that N-person prisoners' dilemma has a cooperative Nash equilibrium, if the players decide their actions sequentially in the order determined by Nature under a certain information structure, and if each player's payoffs satisfy a certain inequality. This paper examines the stability of this cooperative equilibrium against two matters: players' slight mistakes and deviations by coalitions. The main results are as follows: (i) if the inequality on each player's payoffs strictly holds, then the cooperative equilibrium is a strictly proper equilibrium; (ii) if N\leq3, and if full cooperation is Pareto efficient in N-person prisoners' dilemma, then the cooperative equilibrium is a strong Nash equilibrium; (iii) the cooperative equilibrium is in general a coalition-proof Nash equilibrium.

Suggested Citation

  • Ko Nishihara, 1999. "Stability of the cooperative equilibrium in N -person prisoners' dilemma with sequential moves," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 13(2), pages 483-494.
  • Handle: RePEc:spr:joecth:v:13:y:1999:i:2:p:483-494
    Note: Received: June 23, 1997; revised version: December 2, 1997
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    Cited by:

    1. Sheng-Chieh Huang & Xiao Luo, 2008. "Stability, sequential rationality, and subgame consistency," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 34(2), pages 309-329, February.

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