Optimality, Equilibrium, and Curb Sets in Decision Problems Without Commitment
P. Jean-Jacques Herings,
Andrey Meshalkin () and
Additional contact information
Andrey Meshalkin: Maastricht University
Dynamic Games and Applications, 2020, vol. 10, issue 2, No 7, 478-492
Abstract The paper considers a class of decision problems with an infinite time horizon that contains Markov decision problems as an important special case. Our interest concerns the case where the decision maker cannot commit himself to his future action choices. We model the decision maker as consisting of multiple selves, where each history of the decision problem corresponds to one self. Each self is assumed to have the same utility function as the decision maker. Our results are twofold: Firstly, we demonstrate that the set of subgame optimal policies coincides with the set of subgame perfect equilibria of the decision problem. Furthermore, the set of subgame optimal policies is contained in the set of optimal policies and the set of optimal policies is contained in the set of Nash equilibria. Secondly, we show that the set of pure subgame optimal policies is the unique minimal curb set of the decision problem. The concept of a subgame optimal policy is therefore robust to the absence of commitment technologies.
Keywords: Game theory; Decision problem; Multiple selves; Subgame perfect equilibrium; Curb sets (search for similar items in EconPapers)
JEL-codes: C61 C62 C73 (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)
http://link.springer.com/10.1007/s13235-019-00328-w Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Optimality, Equilibrium, and Curb Sets in Decision Problems without Commitment (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:spr:dyngam:v:10:y:2020:i:2:d:10.1007_s13235-019-00328-w
Ordering information: This journal article can be ordered from
Access Statistics for this article
Dynamic Games and Applications is currently edited by Georges Zaccour
More articles in Dynamic Games and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().