Games for cautious players: The Equilibrium in Secure Strategies
A. Iskakov and
Claude d'Aspremont ()
Games and Economic Behavior, 2018, vol. 110, issue C, 58-70
A non-cooperative solution, the Equilibrium in Secure Strategies (EinSS), is defined as an extension of the Nash equilibrium in pure strategies, and is meant to solve games where players are “cautious,” i.e., looking for secure positions and avoiding threats. This concept abstracts and unifies ad hoc solutions already formulated in various applied economic games that have been discussed extensively in the literature. A general existence theorem is provided and then applied to the price-setting game in the Hotelling location model, to Tullock's rent-seeking contests, and to Bertrand–Edgeworth duopoly. Finally, competition in the insurance market game is re-examined and the Rothschild–Stiglitz–Wilson contract is shown to be an EinSS even when the Nash equilibrium breaks down.
Keywords: Noncooperative games; Equilibrium existence; Equilibrium in secure strategies; Hotelling model; Tullock contest; Insurance market; Bertrand–Edgeworth duopoly (search for similar items in EconPapers)
JEL-codes: C72 D03 D43 D72 L12 L13 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Games for cautious players: the equilibrium in secure strategies (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:110:y:2018:i:c:p:58-70
Access Statistics for this article
Games and Economic Behavior is currently edited by E. Kalai
More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().