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Fuzzy Play, Matching Devices and Coordination Faulures

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Listed:
  • P.Jean-Jacques Herings

    (University of Maastricht)

  • Ana Mauleon

    (Université Catholique of Louvain)

  • Vincent Vannetelbosch

    (Université Catholique of Louvain)

Abstract

We revisit n-player coordination games with Pareto-ranked Nash equilibria. The novelty is that we introduce fuzzy play and a matching device, where each player does not choose which pure strategy to play, but instead chooses a nonempty subset of his strategy set that he submits to the matching device. The matching device is a very simple one. It only selects a match if possible, and it selects randomly some strategy belonging to the strategy set sent by each player otherwise. That is, it does not impose that the best alternatives are matched. Using the concepts of perfect Nash equilibrium and of trembling-hand perfect rationalizability, we show that players coordinate directly on the Pareto optimal outcome. This implies that they neither use the option of fuzzy play, nor make use of the matching device.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • P.Jean-Jacques Herings & Ana Mauleon & Vincent Vannetelbosch, 2002. "Fuzzy Play, Matching Devices and Coordination Faulures," Game Theory and Information 0205003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:0205003
    Note: Type of Document - ps.format; pages: 12
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    References listed on IDEAS

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    Cited by:

    1. Herings, P.J.J., 2001. "Coordinating thoughts on coordination failures," Research Memorandum 030, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    2. Barry Charles Ezell & Steven P. Bennett & Detlof Von Winterfeldt & John Sokolowski & Andrew J. Collins, 2010. "Probabilistic Risk Analysis and Terrorism Risk," Risk Analysis, John Wiley & Sons, vol. 30(4), pages 575-589, April.

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    More about this item

    Keywords

    Coordination Games; Coordination Failures; Rationalizability; Matching Devices;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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