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Theories of Coalitional Rationality

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  • Ambrus, Attila

Abstract

This paper generalizes the concept of best response to coalitions of players and offers epistemic definitions of coalitional rationalizability in normal form games. The (best) response of a coalition is defined to be an operator from sets of conjectures to sets of strategies. A strategy is epistemic coalitionally rationalizable if it is consistent with rationality and common certainty that every coalition is rational. A characterization of this solution set is provided for operators satisfying four basic properties. Special attention is devoted to an operator that leads to a solution concept that is generically equivalent to the iteratively defined concept of coalitional rationalizability.

Suggested Citation

  • Ambrus, Attila, 2009. "Theories of Coalitional Rationality," Scholarly Articles 3204917, Harvard University Department of Economics.
  • Handle: RePEc:hrv:faseco:3204917
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    Cited by:

    1. Valentin Goranko & Paolo Turrini, 2016. "Two-Player Preplay Negotiation Games with Conditional Offers," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-31, March.
    2. Gilles Grandjean & Ana Mauleon & Vincent Vannetelbosch, 2017. "Strongly rational sets for normal-form games," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 35-46, April.
    3. Newton, Jonathan, 2012. "Coalitional stochastic stability," Games and Economic Behavior, Elsevier, vol. 75(2), pages 842-854.
    4. Newton, Jonathan, 2017. "Shared intentions: The evolution of collaboration," Games and Economic Behavior, Elsevier, vol. 104(C), pages 517-534.
    5. Newton, Jonathan & Wait, Andrew & Angus, Simon D., 2016. "Watercooler chat, organizational structure and corporate culture," Working Papers 2016-03, University of Sydney, School of Economics.

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