Coalitional stochastic stability
Games and Economic Behavior, 2012, vol. 75, issue 2, pages 842-854
This paper takes the idea of coalitional behavior – groups of people occasionally acting together to their mutual benefit – and incorporates it into the framework of evolutionary game theory that underpins the social learning literature. An equilibrium selection criterion is defined which we call coalitional stochastic stability (CSS). This differs from existing work on stochastic stability in that profitable coalitional deviations are given greater importance than unprofitable single player deviations. A general characterization of CSS is given together with more detailed characterizations for specific classes of games. Applications include contracting, asymmetric social norms and collusive price setting, the latter of which is shown in some circumstances to facilitate competitive outcomes.
Keywords: Stochastic stability; Learning; Coalition; Lexicographic; Contract (search for similar items in EconPapers)
JEL-codes: C71 C72 C73 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:gamebe:v:75:y:2012:i:2:p:842-854
Access Statistics for this article
Games and Economic Behavior is currently edited by E. Kalai
More articles in Games and Economic Behavior from Elsevier
Series data maintained by Zhang, Lei ().