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On the strong $$\beta$$ β -hybrid solution of an N-person game

Author

Listed:
  • Bertrand Crettez

    (Université Paris-Panthéon-Assas, CRED)

  • Rabia Nessah

    (IESEG School of Management, LEM, CNRS)

  • Tarik Tazdaït

    (CIRED, CNRS, EHESS, Ecole des Ponts)

Abstract

We propose a new notion of coalitional equilibria, the strong $$\beta$$ β -hybrid solution, which is a refinement of the hybrid solution introduced by Zhao. Zhao’s solution is well suited to study situations where people cooperate within coalitions but where coalitions compete with one another. This paper’s solution, as opposed to the hybrid solution, assigns to each coalition a strategy profile that is strongly Pareto optimal. Moreover, like the $$\beta$$ β -core, deviations by subcoalitions of any existing coalition are deterred by the threat of a unique counter-strategy available to the non-deviating players. Zhao proved the existence of existence of strong $$\beta$$ β -hybrid solution for transferable utility games with compact and convex strategy spaces and concave continuous payoff functions. Here, we extend his result to non-transferable utility games.

Suggested Citation

  • Bertrand Crettez & Rabia Nessah & Tarik Tazdaït, 2023. "On the strong $$\beta$$ β -hybrid solution of an N-person game," Theory and Decision, Springer, vol. 94(3), pages 363-377, April.
  • Handle: RePEc:kap:theord:v:94:y:2023:i:3:d:10.1007_s11238-022-09900-0
    DOI: 10.1007/s11238-022-09900-0
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    References listed on IDEAS

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    1. Parkash Chander, 2007. "The gamma-core and coalition formation," International Journal of Game Theory, Springer;Game Theory Society, vol. 35(4), pages 539-556, April.
    2. Yano, Makoto, 1990. "A Local Theory of Cooperative Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(3), pages 301-324.
    3. Zhao, Jingang, 1999. "A [beta]-Core Existence Result and Its Application to Oligopoly Markets," Games and Economic Behavior, Elsevier, vol. 27(1), pages 153-168, April.
    4. Zhao, Jingang, 1992. "The hybrid solutions of an N-person game," Games and Economic Behavior, Elsevier, vol. 4(1), pages 145-160, January.
    5. Nessah, Rabia & Tazdaı¨t, Tarik, 2013. "Absolute optimal solution for a compact and convex game," European Journal of Operational Research, Elsevier, vol. 224(2), pages 353-361.
    6. Zhao, Jingang, 1996. "The hybrid equilibria and core selection in exchange economies with externalities," Journal of Mathematical Economics, Elsevier, vol. 26(4), pages 387-407.
    7. Beth Allen, 2000. "The Future of Microeconomic Theory," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 143-150, Winter.
    8. Yang, Zhe & Yuan, George Xianzhi, 2019. "Some generalizations of Zhao’s theorem: Hybrid solutions and weak hybrid solutions for games with nonordered preferences," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 94-100.
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