Entropic selection of Nash equilibrium

Zeynel Harun Alioğulları and Mehmet Barlo ()

MPRA Paper from University Library of Munich, Germany

Abstract: This study argues that Nash equilibria with less variations in players' best responses are more appealing. To that regard, a notion measuring such variations, the entropic selection of Nash equilibrium, is presented: For any given Nash equilibrium, we consider the cardinality of the support of a player's best response against others' strategies that are sufficiently close to the behavior specified. These cardinalities across players are then aggregated with a real-valued function on whose form we impose no restrictions apart from the natural limitation to nondecreasingness in order to obtain equilibria with less variations. We prove that the entropic selection of Nash equilibrium is non-empty and admit desirable properties. Some well-known games, each of which display important insights about virtues / problems of various equilibrium notions, are considered; and, in all of these games our notion displays none of the criticisms associated with these examples. These examples also show that our notion does not have any containment relations with other associated and well-known refinements, perfection, properness and persistence.

Keywords: Entropic Selection of Nash Equilibrium; Refinements of Nash Equilibrium (search for similar items in EconPapers)
JEL-codes: C72 (search for similar items in EconPapers)
Date: 2012-02-28
New Economics Papers: this item is included in nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/37132/1/MPRA_paper_37132.pdf original version (application/pdf)

Related works:
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:pra:mprapa:37132

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().