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Myopic and farsighted stable sets in 2-player strategic-form games

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  • Bloch, Francis
  • van den Nouweland, Anne

Abstract

This paper revisits the analysis of stable sets in two-player strategic-form games. Our two main contributions are (i) to establish a connection between myopic stable sets and the stable matchings of an auxiliary two-sided matching problem and (ii) to identify a structural property of 2-player games, called “the block partition property,” which helps characterize the strategy profiles that are indirectly dominated by a fixed profile. Our analysis also generalizes and unifies existing results on myopic and farsighted stable sets in 2-player games.

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  • Bloch, Francis & van den Nouweland, Anne, 2021. "Myopic and farsighted stable sets in 2-player strategic-form games," Games and Economic Behavior, Elsevier, vol. 130(C), pages 663-683.
    • Handle: RePEc:eee:gamebe:v:130:y:2021:i:c:p:663-683
    DOI: 10.1016/j.geb.2021.10.004
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    More about this item

    Keywords

    Strategic-form game; Myopic stable set; Farsighted stable set; Core;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

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