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The structure of unstable power mechanisms
- Source :
- Economic Theory, Economic Theory, Springer Verlag, 2012, 50, pp.389-415
- Publication Year :
- 2012
- Publisher :
- HAL CCSD, 2012.
-
Abstract
- International audience; We study the structure of unstable power mechanisms. A power mechanism is modeled by an interaction form, the solution of which is called a settlement. By stability, we mean the existence of some settlement for any preference profile. Configurations that produce instability are called cycles. We introduce a stability index that measures the difficulty of emergence of cycles. Structural properties such as exactness, superadditivity, subadditivity and maximality provide indications about the type of instability that may affect the mechanism. We apply our analysis to strategic game forms in the context of Nash-like solutions or core-like solutions. In particular, we establish an upper bound on the stability index of maximal interaction forms.
- Subjects :
- Interaction form
Nakamura number
Effectivity function
Strong equilibrium
Solvability
Collusion
Stability index
JEL: D - Microeconomics/D.D7 - Analysis of Collective Decision-Making/D.D7.D71 - Social Choice • Clubs • Committees • Associations
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Acyclicity
Nash equilibrium
JEL: C - Mathematical and Quantitative Methods/C.C7 - Game Theory and Bargaining Theory/C.C7.C70 - General
Subjects
Details
- Language :
- English
- ISSN :
- 09382259 and 14320479
- Database :
- OpenAIRE
- Journal :
- Economic Theory, Economic Theory, Springer Verlag, 2012, 50, pp.389-415
- Accession number :
- edsair.dedup.wf.001..bbd9fd37f25dc3c733c028adf10a7d17