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Viable Nash Equilibria: An Experiment

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  • Duk Gyoo Kim
  • Daehong Min
  • John Wooders

Abstract

This paper examines the usefulness of Kalai (2020)’s measure of the viability of Nash equilibrium. We experimentally study a class of participation games, which differ in the number of players, the success threshold, and the payoff to not participating. We find that Kalai’s measure captures well how the viability of the everyone-participates (eP) equilibrium depends on the success threshold; the measure does not capture other elements of the game which affect the likelihood that the eP equilibrium is played.

Suggested Citation

  • Duk Gyoo Kim & Daehong Min & John Wooders, 2022. "Viable Nash Equilibria: An Experiment," CESifo Working Paper Series 9913, CESifo.
    • Handle: RePEc:ces:ceswps:_9913
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9913.pdf
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    References listed on IDEAS

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    Cited by:

    1. Kalai, Adam Tauman & Kalai, Ehud, 2024. "Beyond dominance and Nash: Ranking equilibria by critical mass," Games and Economic Behavior, Elsevier, vol. 144(C), pages 378-394.

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    More about this item

    Keywords

    Nash equilibrium; viability; laboratory experiments; coordination game;
    All these keywords.

    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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