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Buck-passing Dumping in a Pure Exchange Game of Bads

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Listed:
  • Takaaki Abe

    (School of Political Science and Economics, Waseda University)

Abstract

We study stable strategy profiles in a pure exchange game of bads, where each player dumps his/her bads such as garbage onto someone else. Hirai et al. (2006) show that cycle dumping, in which each player follows an ordering and dumps his/her bads onto the next player, is a strong Nash equilibrium and that self-disposal is α-stable for some initial distributions of bads. In this paper, we show that a strategy profile of bullying, in which all players dump their bads onto a single player, becomes α-stable for every exchange game of bads. We also provide a necessary and sufficient condition for a strategy profile to be α-stable in an exchange game of bads. Moreover, we show that cycle dumping is the only dumping behavior that generates a strong Nash equilibrium. In addition, we show that repeating an exchange after the first exchange makes self-disposal stationary.

Suggested Citation

  • Takaaki Abe, 2019. "Buck-passing Dumping in a Pure Exchange Game of Bads," Working Papers 1918, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1918
    as

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    References listed on IDEAS

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    1. Parkash Chander & Henry Tulkens, 2006. "The Core of an Economy with Multilateral Environmental Externalities," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 153-175, Springer.
    2. Shapley, Lloyd S & Shubik, Martin, 1969. "On the Core of an Economic System with Externalities," American Economic Review, American Economic Association, vol. 59(4), pages 678-684, Part I Se.
    3. Carlo Carraro & Vito Fragnelli (ed.), 2004. "Game Practice and the Environment," Books, Edward Elgar Publishing, number 3344.
    4. Scarf, Herbert E., 1971. "On the existence of a coopertive solution for a general class of N-person games," Journal of Economic Theory, Elsevier, vol. 3(2), pages 169-181, June.
    5. Hirai, Toshiyuki & Masuzawa, Takuya & Nakayama, Mikio, 2006. "Coalition-proof Nash equilibria and cores in a strategic pure exchange game of bads," Mathematical Social Sciences, Elsevier, vol. 51(2), pages 162-170, March.
    6. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
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    More about this item

    Keywords

    bads; dumping; exchange; stability;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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