Chander, Parkash and Wooders, Myrna (2016) The subgame Perfect Core. [Working papers (or Preprints)]
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Abstract
We propose a cooperative solution concept for games in extensive form that incorporates both cooperation and subgame perfection. This new concept, which we label the subgame-perfect core, is a refinement of the core of an extensive game in the same sense as the set of subgame-perfect Nash equilibria is a refinement of the set of Nash equilibria. Moreover, each subgame perfect core payoff vector can be obtained as a subgame-perfect Nash equilibrium payoff vector of a modified extensive game. We establish several additional properties of the subgame-perfect core and demonstrate its applicability by studying three applications: the centipede game, the two-player infinite bargaining game of alternating offers, and a dynamic game of climate change. In addition, we motivate and introduce a concept of subgame-perfect strong Nash equilibrium of an extensive game and show that it is coalition proof.
Item Type: | Working papers (or Preprints) |
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Keywords: | Nash equilibria | cooperative solution | subgame Perfect Core |
Subjects: | Physical, Life and Health Sciences > Mathematics Social Sciences and humanities > Social Sciences > Public Policy |
JGU School/Centre: | Jindal School of Government and Public Policy |
Depositing User: | Arjun Dinesh |
Date Deposited: | 10 Jun 2022 09:53 |
Last Modified: | 13 Jun 2022 04:40 |
Official URL: | http://www.accessecon.com/Pubs/VUECON/VUECON-16-00... |
URI: | https://pure.jgu.edu.in/id/eprint/3340 |
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