Given n agents with who wish to divide m commodities, consider the n-person noncooperative game with strategies consisting of concave increasing utility functions, and whose outcomes are the relative utilitarian solution. Any constrained equal-income competitive equilibrium allocation for the true utilities is shown to ba a Nash equilibrium outcome for the noncooperative game. Conditions are pr...

We examine a variety of stability and equilibrium de…nitions that have been used to study the formation of social networks among a group of players. In particular we compare variations on three types of de…nitions: those based on a pairwise stability notion, those based on the Nash equilibria of a link formation game, and those based on equilibria of a link formation game where transfers are po...

This paper presents repeated games with hidden moves, in which players receive imperfect private signals and are able to communicate. We propose a conditional probability approach to solve the learning problem in repeated games with correlated private signals and delayed communication. We then apply this approach to symmetric n-player games to obtain an approximate efficiency result. © 2007 Els...

We present a classification of all stationary subgame perfect equilibria of the random proposer model for a three-person cooperative game according to the level of efficiency. The efficiency level is characterized by the number of “central” players who join all equilibrium coalitions. The existence of a central player guarantees asymptotic efficiency. The marginal contributions of players to th...

Goeree & Holt (2001) observe that, for some parameter values, Nash equilibrium provides good predictions for actual behaviour in experiments. For other payoff parameters, however, actual behaviour deviates consistently from that predicted by Nash equilibria. They attribute the robust deviations from Nash equilibrium to actual players' considering not only marginal gains and losses but also tota...

Thomas C. Schelling’s most influential contributions include focal points in coordination games, commitment and credible threats in bargaining, the theory of social dilemmas, and anticipatory selfcommand in intertemporal choice. His spatial proximity models are early prototypes of cellular automata. Contributions to this special issue were inspired by a few of these theoretical ideas. 2006 Else...

This paper is a note on how Information Theory and Codification Theory are helpful in the computational design both of communication protocols and strategy sets in the framework of finitely repeated games played by boundedly rational agents. More precisely, we show the usefulness of both theories to improve the existing automata bounds of Neyman’s (1998) work on finitely repeated games played b...

It is known that every continuous time fictitious play process approaches equilibrium in every nondegenerate 2×2 and 2×3 game, and it has been conjectured that convergence to equilibrium holds generally for 2×n games. We give a simple geometric proof of this. As a corollary, we obtain the same result for the discrete fictitious play process. Journal of Economic Literature classification numbers...

We examine a sequential mechanism which is a simple modification of the normal form mechanism introduced by Abreu and Matsushima (1992). We show that almost any social choice function can be virtually implemented via a finite sequential game of perfect information. The solution concept assumed is backwards induction. In particular, any social choice function that is virtually implementable via ...

We view achieving a particular correlated equilibrium distribution for a normal form game as an implementation problem. We show, using a parametric version of the two-person Chicken game and a wide class of correlated equilibrium distributions, that a social choice function that chooses a particular correlated equilibrium distribution from this class does not satisfy the Maskin monotonicity con...