Cooperative Games (Von Neumann-Morgenstern Stable Sets)

Author(s):  
Ryo Kawasaki ◽  
Jun Wako ◽  
Shigeo Muto
2020 ◽  
Vol 15 (1) ◽  
pp. 159-197 ◽  
Author(s):  
Bhaskar Dutta ◽  
Hannu Vartiainen

Farsighted formulations of coalitional formation, for instance, by Harsanyi and Ray and Vohra, have typically been based on the von Neumann–Morgenstern stable set. These farsighted stable sets use a notion of indirect dominance in which an outcome can be dominated by a chain of coalitional “moves” in which each coalition that is involved in the sequence eventually stands to gain. Dutta and Vohra point out that these solution concepts do not require coalitions to make optimal moves. Hence, these solution concepts can yield unreasonable predictions. Dutta and Vohra restricted coalitions to hold common, history‐independent expectations that incorporate optimality regarding the continuation path. This paper extends the Dutta–Vohra analysis by allowing for history‐dependent expectations. The paper provides characterization results for two solution concepts that correspond to two versions of optimality. It demonstrates the power of history dependence by establishing nonemptyness results for all finite games as well as transferable utility partition function games. The paper also provides partial comparisons of the solution concepts to other solutions.


Econometrica ◽  
2019 ◽  
Vol 87 (5) ◽  
pp. 1763-1779 ◽  
Author(s):  
Debraj Ray ◽  
Rajiv Vohra
Keyword(s):  

Harsanyi (1974) and Ray and Vohra (2015) extended the stable set of von Neumann and Morgenstern to impose farsighted credibility on coalitional deviations. But the resulting farsighted stable set suffers from a conceptual drawback: while coalitional moves improve on existing outcomes, coalitions might do even better by moving elsewhere. Or other coalitions might intervene to impose their favored moves. We show that every farsighted stable set satisfying some reasonable and easily verifiable properties is unaffected by the imposition of these stringent maximality constraints. The properties we describe are satisfied by many, but not all, farsighted stable sets.


2014 ◽  
Vol 125 (1) ◽  
pp. 70-73
Author(s):  
E. Inarra ◽  
C. Larrea ◽  
A. Saracho
Keyword(s):  

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