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Stability and efficiency in perfect foresight situation

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  • Yoshio Kamijo

Abstract

We study the stable standard of behavior in a perfect foresight situation that was introduced by Xue (Econ Theory 11:603–627, 1998 ). We assume that the inducement relations are invertible and coalition free. We show that the conditions are sufficient for the existence of the nonempty-valued optimistic/conservative stable standard of behavior for perfect foresight situation (OSSB-PF/CSSB-PF). Moreover, we find that an OSSB-PF supports a Pareto-efficient outcome as a stable outcome; if the preference relations are strict, only the Pareto-efficient outcomes are supported by the OSSB-PF. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Yoshio Kamijo, 2013. "Stability and efficiency in perfect foresight situation," Theory and Decision, Springer, vol. 75(3), pages 339-357, September.
    • Handle: RePEc:kap:theord:v:75:y:2013:i:3:p:339-357
    DOI: 10.1007/s11238-012-9347-y
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