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The cutting power of preparation

Author

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  • Tercieux, Olivier

    (Dept. of Econometrics and OR, Tilburg University, The Netherlands)

  • Voorneveld, Mark

    (Dept. of Economics, Stockholm School of Economics)

Abstract

In a strategic game, a curb set [Basu and Weibull, Econ. Letters 36 (1991) 141] is a product set of pure strategies containing all best responses ro every possible belief restricted to this set. Prep sets [Voorneveld, Games Econ. Behav. 48 (2004) 403] relax this condition by only requiring the presence of at least one best response to such a belief. The purpose of this paper is to provide economically interesting classes of games in which minimal prep sets give sharp predictions, whereas in relevant subclasses of these games, minimal curb sets have no cutting power whatsoever and simply consist of the entire strategy space. These classes include potential games, congestion games with player-specific payoffs, and supermodular games.

Suggested Citation

  • Tercieux, Olivier & Voorneveld, Mark, 2005. "The cutting power of preparation," SSE/EFI Working Paper Series in Economics and Finance 583, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0583
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    Cited by:

    1. Kets, W., 2007. "The Minority Game : An Economics Perspective," Other publications TiSEM 65d52a6a-b27d-45a9-93a7-e, Tilburg University, School of Economics and Management.
    2. Christian Ewerhart, 2020. "Ordinal potentials in smooth games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(4), pages 1069-1100, November.
    3. Kets, W. & Voorneveld, M., 2007. "Congestion, Equilibrium and Learning : The Minority Game," Discussion Paper 2007-61, Tilburg University, Center for Economic Research.
    4. Kets, W., 2008. "Networks and learning in game theory," Other publications TiSEM 7713fce1-3131-498c-8c6f-3, Tilburg University, School of Economics and Management.
    5. Kets, W. & Voorneveld, M., 2005. "Learning to be Prepared," Discussion Paper 2005-117, Tilburg University, Center for Economic Research.

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    More about this item

    Keywords

    curb sets; prep sets; potential games; congestion games; supermodular games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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