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Representation of effectivity functions in coalition proof Nash equilibrium: A complete characterization

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  • Hans Keiding

    () (Institute of Economics, University of Copenhagen, Studiestraede 6, 1455 Copenhagen K., Denmark)

  • Bezalel Peleg

    (Institute of Mathematics and Center for Rationality and Interactive Decision Theory, Hebrew University of Jerusalem)

Abstract

The concept of coalition proof Nash equilibrium was introduced by Bernheim et al. [5]. In the present paper, we consider the representation problem for coalition proof Nash equilibrium: For a given effectivity function, describing the power structure or the system of rights of coalitions in society, it is investigated whether there is a game form which gives rise to this effectivity function and which is such that for any preference assignment, there is a coalition proof Nash equilibrium. It is shown that the effectivity functions which can be represented in coalition proof Nash equilibrium are exactly those which satisfy the well-known properties of maximality and superadditivity. As a corollary of the result, we obtain necessary conditions for implementation of a social choice correspondence in coalition proof Nash equilibrium which can be formulated in terms of the associated effectivity function.

Suggested Citation

  • Hans Keiding & Bezalel Peleg, 2002. "Representation of effectivity functions in coalition proof Nash equilibrium: A complete characterization," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(2), pages 241-263.
  • Handle: RePEc:spr:sochwe:v:19:y:2002:i:2:p:241-263
    Note: Received: 24 June 1999/Accepted: 20 September 2000
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    Cited by:

    1. Hans Keiding & Bezalel Peleg, 2006. "Binary effectivity rules," Review of Economic Design, Springer;Society for Economic Design, vol. 10(3), pages 167-181, December.
    2. Keiding, Hans & Peleg, Bezalel, 2006. "On the continuity of representations of effectivity functions," Journal of Mathematical Economics, Elsevier, vol. 42(7-8), pages 827-842, November.
    3. Sinan Ertemel & Levent Kutlu & M. Remzi Sanver, 2015. "Voting games of resolute social choice correspondences," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(1), pages 187-201, June.
    4. Peleg, Bezalel, 2004. "Representation of effectivity functions by acceptable game forms: a complete characterization," Mathematical Social Sciences, Elsevier, vol. 47(3), pages 275-287, May.

    More about this item

    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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