The Myopic Stable Set for Social Environments

Thomas Demuynck, P. Jean-Jacques Herings, Riccardo Saulle () and Christian Seel

Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: We introduce a new solution concept for models of coalition formation, called the myopic stable set. The myopic stable set is defined for a very general class of social environments and allows for an infinite state space. We show that the myopic stable set exists and is non-empty. Under minor continuity conditions, we also demonstrate uniqueness. Furthermore, the myopic stable set is a superset of the core and of the set of pure strategy Nash equilibria in noncooperative games. Additionally, the myopic stable set generalizes and unifies various results from more specific environments. In particular, the myopic stable set coincides with the coalition structure core in coalition function form games if the coalition structure core is non-empty; with the set of stable matchings in the standard one-to-one matching model; with the set of pairwise stable networks and closed cycles in models of network formation; and with the set of pure strategy Nash equilibria infinite supermodular games, finite potential games, and aggregative games. We illustrate the versatility of our concept by characterizing the myopic stable set in a model of Bertrand competition with asymmetric costs, for which the literature so far has not been able to fully characterize the set of all (mixed) Nash equilibria.

Keywords: social environments; group formation; stability; Nash equilibrium (search for similar items in EconPapers)
JEL-codes: C70 C71 (search for similar items in EconPapers)
Pages: 36 p.
Date: 2017-01
New Economics Papers: this item is included in nep-cdm, nep-gth, nep-hpe, nep-mic and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/2447 ... SAULLE-themyopic.pdf Full text for the whole work, or for a work part (application/pdf)

Related works:
Journal Article: The Myopic Stable Set for Social Environments (2019)
Working Paper: The Myopic Stable Set for Social Environments (2017)
Working Paper: The Myopic Stable Set for Social Environments (2017)
Working Paper: The Myopic Stable Set for Social Environments (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eca:wpaper:2013/244778

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/244778

Access Statistics for this paper

More papers in Working Papers ECARES from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().