A strategic implementation of the Average Tree solution for cycle-free graph games

In this note we provide a strategic implementation of the Average Tree solution for zero-monotonic cycle-free graph games. That is, we propose a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the average hierarchical outcome of the game. This mechanis...

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Veröffentlicht in:Journal of economic theory 2013-11, Vol.148 (6), p.2737-2748
Hauptverfasser: van den Brink, René, van der Laan, Gerard, Moes, Nigel
Format: Artikel
Sprache:eng
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Zusammenfassung:In this note we provide a strategic implementation of the Average Tree solution for zero-monotonic cycle-free graph games. That is, we propose a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the average hierarchical outcome of the game. This mechanism takes into account that a player is only able to communicate with other players (i.e., to make proposals about a division of the surplus of cooperation) when they are connected in the graph.
ISSN:0022-0531
1095-7235
DOI:10.1016/j.jet.2013.07.018