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Social Rationalizability with Mediation

Author

Listed:
  • Herings, P. Jean-Jacques

    (Tilburg University)

  • Mauleon, Ana

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

  • Vannetelbosch, Vincent

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

Abstract

We propose a solution concept for social environments called social rationalizability with mediation that identifies the consequences of common knowledge of rationality and farsightedness. In a social environment several coalitions may and could be willing to move at the same time. Individuals not only hold conjectures about the behaviors of other individuals but also about how a mediator is going to solve conflicts of interest. The set of socially rationalizable outcomes with mediation is shown to be non-empty for all social environments, and it can be computed by an iterative reduction procedure. We show that social rationalizability with mediation does not necessarily satisfy coalitional rationality when the number of coalition members is greater than two.

Suggested Citation

  • Herings, P. Jean-Jacques & Mauleon, Ana & Vannetelbosch, Vincent, 2022. "Social Rationalizability with Mediation," LIDAM Reprints CORE 3213, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:3213
    DOI: https://doi.org/10.1007/s13235-022-00465-9
    Note: In: Dynamic Games and Applications, 2022
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    References listed on IDEAS

    as
    1. Herings, P.J.J. & Mauleon, A. & Vannetelbosch, V., 2000. "Social rationalizability," Research Memorandum 017, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
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    Cited by:

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    2. Francis Bloch & Ana Mauleon & Vincent Vannetelbosch, 2023. "Preface to the Special issue on “Group Formation and Farsightedness”," Dynamic Games and Applications, Springer, vol. 13(2), pages 435-439, June.

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    More about this item

    Keywords

    Social environments ; Rationalizability ; Mediation ; Coalitional rationality;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • 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

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