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Equilibrium selection through $$\mathbf {p}_{u}$$ p u -dominance

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  • Andrea Gallice

    (University of Torino
    Collegio Carlo Alberto)

Abstract

The paper introduces and discusses the concept of $$\mathbf {p}_{u}$$ p u -dominance in the context of finite games in normal form. It then presents the $$\mathbf { p}_{u}$$ p u -dominance criterion for equilibrium selection. The $$\mathbf {p}_{u}$$ p u -dominance criterion is inspired by and closely related to the $$\mathbf {p}$$ p -dominance criterion originally proposed by Morris et al. (Econometrica 63:145–157, 1995). However, there are games in which the two criteria lead to different refinements. We provide sufficient conditions under which equilibrium selection through $$\mathbf {p}_{u}$$ p u -dominance is weakly finer (respectively, coarser) than equilibrium selection through $$\mathbf {p}$$ p -dominance.

Suggested Citation

  • Andrea Gallice, 2015. "Equilibrium selection through $$\mathbf {p}_{u}$$ p u -dominance," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 3(1), pages 53-64, April.
    • Handle: RePEc:spr:etbull:v:3:y:2015:i:1:d:10.1007_s40505-015-0069-5
    DOI: 10.1007/s40505-015-0069-5
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    References listed on IDEAS

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    1. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, April.
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    4. Haruvy, Ernan & Stahl, Dale O., 2007. "Equilibrium selection and bounded rationality in symmetric normal-form games," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 98-119, January.
    5. Weizsacker, Georg, 2003. "Ignoring the rationality of others: evidence from experimental normal-form games," Games and Economic Behavior, Elsevier, vol. 44(1), pages 145-171, July.
    6. Kojima, Fuhito, 2006. "Risk-dominance and perfect foresight dynamics in N-player games," Journal of Economic Theory, Elsevier, vol. 128(1), pages 255-273, May.
    7. Kim, Youngse, 1996. "Equilibrium Selection inn-Person Coordination Games," Games and Economic Behavior, Elsevier, vol. 15(2), pages 203-227, August.
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    More about this item

    Keywords

    Equilibrium selection; Normal form games; $$mathbf {p}_{u}$$ p u -Dominance; $$mathbf {p}$$ p -Dominance;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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