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Stable Sets in Three Agent Pillage Games

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  • Manfred Kerber
  • Colin Rowat

Abstract

Jordan [2006, “Pillage and property”, JET] characterises stable sets for three special cases of ‘pillage games’. For anonymous, three agent pillage games we show that: when the core is non-empty, it must take one of five forms; all such pillage games with an empty core represent the same dominance relation; when a stable set exists, and the game also satisfies a continuity and a responsiveness assumption, it is unique and contains no more than 15 elements. This result uses a three step procedure: first, if a single agent can defend all of the resources against the other two, these allocations belong to the stable set; dominance is then transitive on the loci of allocations on which the most powerful agent can, with any ally, dominate the third, adding the maximal elements of this set to the stable set; finally, if any allocations remain undominated or not included, the game over the remaining allocations is equivalent to the ‘majority pillage game’, which has a unique stable set [Jordan and Obadia, 2004, “Stable sets in majority pillage games”, mimeo]. Non-existence always reflects conditions on the loci of allocations along which the most powerful agent needs an ally. The analysis unifies the results in Jordan [2006] when n = 3.

Suggested Citation

  • Manfred Kerber & Colin Rowat, 2009. "Stable Sets in Three Agent Pillage Games," Discussion Papers 09-07, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:09-07
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    References listed on IDEAS

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    1. Manfred Kerber & Colin Rowat, 2011. "A Ramsey bound on stable sets in Jordan pillage games," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(3), pages 461-466, August.
    2. Alvin E. Roth, 1976. "Subsolutions and the Supercore of Cooperative Games," Mathematics of Operations Research, INFORMS, vol. 1(1), pages 43-49, February.
    3. R.J. Aumann & S. Hart (ed.), 2002. "Handbook of Game Theory with Economic Applications," Handbook of Game Theory with Economic Applications, Elsevier, edition 1, volume 3, number 3.
    4. Skaperdas, Stergios, 1992. "Cooperation, Conflict, and Power in the Absence of Property Rights," American Economic Review, American Economic Association, vol. 82(4), pages 720-739, September.
    5. Manfred Kerber & Colin Rowat, 2011. "A Ramsey bound on stable sets in Jordan pillage games," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(3), pages 461-466, August.
    6. Alan F. Breardon & Colin Rowat, 2010. "Stable Sets in multi-good pillage games are small," Discussion Papers 10-05, Department of Economics, University of Birmingham.
    7. Lucas, William F., 1992. "Von Neumann-Morgenstern stable sets," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 17, pages 543-590, Elsevier.
    8. Vincent Anesi, 2006. "Committees with Farsighted Voters: A New Interpretation of Stable Sets," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 27(3), pages 595-610, December.
    9. Michele Piccione & Ariel Rubinstein, 2007. "Equilibrium in the Jungle," Economic Journal, Royal Economic Society, vol. 117(522), pages 883-896, July.
    10. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
    11. Jordan, J.S., 2006. "Pillage and property," Journal of Economic Theory, Elsevier, vol. 131(1), pages 26-44, November.
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    Cited by:

    1. Rowat, Colin & Kerber, Manfred, 2014. "Sufficient conditions for unique stable sets in three agent pillage games," Mathematical Social Sciences, Elsevier, vol. 69(C), pages 69-80.
    2. Manfred Kerber & Colin Rowat, 2011. "A Ramsey bound on stable sets in Jordan pillage games," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(3), pages 461-466, August.
    3. Simon MacKenzie & Manfred Kerber & Colin Rowat, 2015. "Pillage games with multiple stable sets," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 993-1013, November.

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    More about this item

    Keywords

    pillage; cooperative game theory; core; stable sets; algorithm;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights

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