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Achievable Outcomes of Dynamic Contribution Games, Second Version

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  • Steven A. Matthews

    (Department of Economics, University of Pennsylvania)

Abstract

This paper concerns multistage games, with and without discounting, in which each player can increase the level of an action over time so as to increase the other players’ future payoffs. An action profile is achievable if it is the limit point of a subgame perfect equilibrium path. Necessary conditions are derived for achievability under relatively general conditions. They imply that any efficient profile that is approximately achievable must be in the core of the underlying coalitional game. In some but not all games with discounting, the necessary conditions for achievability are also sufficient for a profile to be the limit of achievable profiles as the period length shrinks to zero. Consequently, in these games when the period length is very short, (i) the set of achievable profiles does not depend on the move structure; (ii) an efficient profile can be approximately achieved if and only if it is in the core; and (iii) any achievable profile can be achieved almost instantly.

Suggested Citation

  • Steven A. Matthews, 2008. "Achievable Outcomes of Dynamic Contribution Games, Second Version," PIER Working Paper Archive 11-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 20 Jun 2011.
    • Handle: RePEc:pen:papers:11-016
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    dynamic games; monotone games; core; public goods; voluntary contribution; gradualism;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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