A new old solution for weak tournaments
V Anesi - Social Choice and Welfare, 2012 - Springer
Social Choice and Welfare, 2012•Springer
This article uncovers dynamic properties of the von Neumann–Morgenstern solution in weak
tournaments and majoritarian games. We propose a new procedure for the construction of
choice sets from weak tournaments, based on dynamic stability criteria. The idea is to
analyze dynamic versions of tournament games. The exploration of a specific class of
Markov perfect equilibria in these “dynamic tournament games” yields a new solution
concept for weak tournaments—the A-stable set. The alternatives in an A-stable set …
tournaments and majoritarian games. We propose a new procedure for the construction of
choice sets from weak tournaments, based on dynamic stability criteria. The idea is to
analyze dynamic versions of tournament games. The exploration of a specific class of
Markov perfect equilibria in these “dynamic tournament games” yields a new solution
concept for weak tournaments—the A-stable set. The alternatives in an A-stable set …
Abstract
This article uncovers dynamic properties of the von Neumann–Morgenstern solution in weak tournaments and majoritarian games. We propose a new procedure for the construction of choice sets from weak tournaments, based on dynamic stability criteria. The idea is to analyze dynamic versions of tournament games. The exploration of a specific class of Markov perfect equilibria in these “dynamic tournament games” yields a new solution concept for weak tournaments—the A-stable set. The alternatives in an A-stable set constitute persistent, long-run policy outcomes in the corresponding dynamic tournament games. We find that, in any weak tournament, the class of A-stable sets coincides with that of von Neumann–Morgenstern stable sets.
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