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Dynamic Farsighted Stability

Author

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  • Hannu Vartiainen

    () (Department of Economics, Turku School of Economics)

Abstract

We study farsighted stability under the assumption that coalitions may condition actions on the history of the play. vNM stable set over possible play paths is defined with respect to the indirect dominance relation. We show that such dynamic stable set always exists. It is characterized by a generalization of the ultimate uncovered set. In unbounded agenda setting context, the dynamic stable set implements only efficient outcomes if active coalitions form a majority.

Suggested Citation

  • Hannu Vartiainen, 2007. "Dynamic Farsighted Stability," Discussion Papers 22, Aboa Centre for Economics.
  • Handle: RePEc:tkk:dpaper:dp22
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    File URL: http://www.ace-economics.fi/kuvat/dp022.pdf
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    References listed on IDEAS

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    14. Moulin, Herve, 1994. "Social choice," Handbook of Game Theory with Economic Applications,in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 31, pages 1091-1125 Elsevier.
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    More about this item

    Keywords

    vNM stable set; farsightedness; dynamic; agenda formation;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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