Econometrica: Sep 1984, Volume 52, Issue 5
Effectivity Functions and Acceptable Game Forms
Bhaskar DuttaA game form is acceptable if for every preference profile, a Nash equilibrium exists and the outcomes corresponding to Nash equilibria are Pareto efficient. A game form is strongly consistent if the set of strong Nash equilibria is always nonempty. The paper shows that no game form can be both acceptable and strongly consistent. The set of game forms which are both acceptable and dominance-solvable is also characterized in terms of the effectivity functions of game forms.
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