Strong Nash equilibria and mixed strategies
Eleonora Braggion (),
Nicola Gatti (),
Roberto Lucchetti (),
Tuomas Sandholm () and
Bernhard von Stengel
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Eleonora Braggion: Politecnico di Milano
Nicola Gatti: Politecnico di Milano
Roberto Lucchetti: Politecnico di Milano
Tuomas Sandholm: Carnegie Mellon University
International Journal of Game Theory, 2020, vol. 49, issue 3, No 3, 699-710
Abstract:
Abstract We study strong Nash equilibria in mixed strategies in finite games. A Nash equilibrium is strong if no coalition of players can jointly deviate so that all players in the coalition get strictly better payoffs. Our main result concerns games with two players and states that if a game admits a strong Nash equilibrium, then the payoff pairs in the support of the equilibrium lie on a straight line in the players’ utility space. As a consequence, the set of games that have a strong Nash equilibrium in which at least one player plays a mixed strategy has measure zero. We show that the same property holds for games with more than two players, already when no coalition of two players can profitably deviate. Furthermore, we show that, in contrast to games with two players, in a strong Nash equilibrium an outcome that is strictly Pareto dominated may occur with positive probability.
Keywords: Noncooperative games; Strong Nash equilibrium; Mixed strategies; Pareto efficiency (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:spr:jogath:v:49:y:2020:i:3:d:10.1007_s00182-020-00723-3
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DOI: 10.1007/s00182-020-00723-3
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