Tuesday 11
Game theory
Kerim Keskin
› 12:00 - 12:30 (30min)
› 601
Organizational Refinements of Nash Equilibrium
Takashi Kamihigashi  1@  , Kerim Keskin  2@  , çagri Saglam  3@  
1 : Kobe University
2 : ADA University
3 : Bilkent University  -  Website
Bilkent University 06800 Bilkent, Ankara TURKEY -  Turkey

Strong Nash equilibrium (see Aumann, 1959) and coalition-proof Nash equilibrium (see Bernheim et al., 1987) rely on the idea that players are allowed to form coalitions and to make joint deviations. They both consider a case in which any coalition can be formed. Be that as it may, there are many real life examples where some coalitions/subcoalitions cannot be formed. Furthermore, when all coalitions are formed, there may occur conflicts of interest such that a player is not able to choose an action that simultaneously meets the requirements of two coalitions that he/she is a member of. Stemming from these criticisms, we study an organizational framework where some coalitions/subcoalitions are not formed and where the coalitional structure are formulated in such a way that there remain no conflicts of interest. We define an organization as an ordered collection of partitions of the set of players in such a way that any partition is coarser than the partitions that precede it. For a given organization, we introduce the notion of organizational Nash equilibrium. We analyze the existence of equilibrium in a subclass of games with strategic complementarities and illustrate how the proposed notion refines the set of Nash equilibria in some examples of normal form games.

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