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The Myopic Stable Set for Social Environments (RM/17/002-revised)

Author

Listed:
  • Demuynck, Thomas
  • Herings, P. Jean-Jacques

    (Microeconomics & Public Economics, RS: GSBE ETBC, RS: GSBE Theme Conflict & Cooperation, RS: GSBE Theme Data-Driven Decision-Making)

  • Saulle, Riccardo

    (Microeconomics & Public Economics, RS: GSBE ETBC)

  • Seel, Christian

    (Microeconomics & Public Economics, RS: GSBE ETBC, RS: GSBE Theme Conflict & Cooperation)

Abstract

We introduce a new solution concept for models of coalition formation, called the myopic stable set (MSS). The MSS is defined for a general class of social environments and allows for an infinite state space. An MSS exists and, under minor continuity assumptions, it is also unique. The MSS generalizes and unifies various results from more specific applications. It coincides with the coalition structure core in coalition function form games when this set is non-empty; with the set of stable matchings in the Gale-Shapley matching model; with the set of Pareto optimal allocations in the Shapley-Scarf housing matching model; with the set of pairwise stable networks and closed cycles in models of network formation; with the set of pure strategy Nash equilibria in pseudo-potential games and finite supermodular games; and with the set of mixed strategy Nash equilibria in several classes of two-player games.

Suggested Citation

  • Demuynck, Thomas & Herings, P. Jean-Jacques & Saulle, Riccardo & Seel, Christian, 2018. "The Myopic Stable Set for Social Environments (RM/17/002-revised)," Research Memorandum 001, Maastricht University, Graduate School of Business and Economics (GSBE).
    • Handle: RePEc:unm:umagsb:2018001
    DOI: 10.26481/umagsb.2018001
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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