We propose an equilibrium concept, the Robust Nash equilibrium (RNE), that combines the best-reply rationality and the first mover invariance condition. The single-stage 2x2 symmetric information game G is transformed into sequential two-stage games with two sub-trees: STA has the row player starting and STB has the column player starting. A profile in G is robust if it is the strict SPNE of the two branches; it is ephemeral if it is not the SPNE of any branch. We show that every strict dominant strategy equilibrium of G is robust but not every strict Nash equilibrium of G is. We show further that every robust profile of G is always a strict Nash equilibrium of G. A Robust Nash equilibrium (RNE) of G is any robust profile of G. The RNE of G is unique. We show in particular that the payoff dominant strict Nash equilibrium of a coordination game G is RNE while the strictly payoff-dominated Nash equilibrium of G is ephemeral. The original Harsanyi-Selten preference for payoff dominance over risk dominance is supported by robustness without invoking collective rationality.


    Zugriff

    Download


    Exportieren, teilen und zitieren



    Titel :

    The Robust Nash equilibrium and equilibrium selection in 2x2 coordination games


    Beteiligte:

    Erscheinungsdatum :

    01.01.2012


    Medientyp :

    Paper


    Format :

    Elektronische Ressource


    Sprache :

    Englisch



    Klassifikation :

    DDC:    330 / 629




    Essays on Nash equilibrium refinements

    De Stefano, Federico | BASE | 2015

    Freier Zugriff

    Equilibrium Selection and Simple Signaling Games

    Mitzkewitz, Michael | BASE | 2018

    Freier Zugriff



    Probably approximately correct Nash equilibrium learning

    Fele, F / Margellos, K | BASE | 2020

    Freier Zugriff