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Coalitional Rationalizability

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  • Attila Ambrus

Abstract

This paper investigates how groups or coalitions of players can act in their collective interest in noncooperative normal form games even if equilibrium play is not assumed. The main idea is that each member of a coalition will confine play to a subset of their strategies if it is in their mutual interest to do so. An iterative procedure of restrictions is used to define a noncooperative solution concept, the set of coalitionally rationalizable strategies. The procedure is analogous to iterative deletion of never best response strategies, but operates on implicit agreements by different coalitions. The solution set is a nonempty subset of the rationalizable strategies.

Suggested Citation

  • Attila Ambrus, 2006. "Coalitional Rationalizability," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(3), pages 903-929.
    • Handle: RePEc:oup:qjecon:v:121:y:2006:i:3:p:903-929.
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    File URL: http://hdl.handle.net/10.1162/qjec.121.3.903
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    Cited by:

    1. Gilles Grandjean & Ana Mauleon & Vincent Vannetelbosch, 2017. "Strongly rational sets for normal-form games," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 35-46, April.
    2. Xiao Luo & Xuewen Qian & Chen Qu, 2020. "Iterated elimination procedures," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(2), pages 437-465, September.
    3. Grandjean, Gilles & Mantovani, Marco & Mauleon, Ana & Vannetelbosch, Vincent, 2017. "Communication structure and coalition-proofness – Experimental evidence," European Economic Review, Elsevier, vol. 94(C), pages 90-102.

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