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Coalition-proofness in a class of games with strategic substitutes

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  • Federico Quartieri
  • Ryusuke Shinohara

Abstract

We examine the coalition-proofness and Pareto properties of Nash equilibria in pure strategy $$\sigma $$ σ -interactive games with strategic substitutes and increasing/decreasing externalities. For this class of games: (i) we prove the equivalence among the set of Nash equilibria, the set of coalition-proof Nash equilibria under strong Pareto dominance and the set of Nash equilibria that are not strongly Pareto dominated by other Nash equilibria; (ii) we prove that the fixpoints of some “ extremal” selections from the joint best reply correspondence are both coalition-proof Nash equilibria under weak Pareto dominance and not weakly Pareto dominated by other Nash equilibria. We also provide an order-theoretic characterization of the set of Nash equilibria and show various applications of our results. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Federico Quartieri & Ryusuke Shinohara, 2015. "Coalition-proofness in a class of games with strategic substitutes," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 785-813, November.
  • Handle: RePEc:spr:jogath:v:44:y:2015:i:4:p:785-813
    DOI: 10.1007/s00182-014-0452-8
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    1. Luis C. Corchón, 2021. "Aggregative games," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 49-71, March.

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