Stability and efficiency in perfect foresight situation

Research output: Contribution to journalArticle

Abstract

We study the stable standard of behavior in a perfect foresight situation that was introduced by Xue (Econ Theory 11:603-627, 1998). We assume that the inducement relations are invertible and coalition free. We show that the conditions are sufficient for the existence of the nonempty-valued optimistic/conservative stable standard of behavior for perfect foresight situation (OSSB-PF/CSSB-PF). Moreover, we find that an OSSB-PF supports a Pareto-efficient outcome as a stable outcome; if the preference relations are strict, only the Pareto-efficient outcomes are supported by the OSSB-PF.

Original languageEnglish
Pages (from-to)339-357
Number of pages19
JournalTheory and Decision
Volume75
Issue number3
DOIs
Publication statusPublished - 2013 Sep
Externally publishedYes

Keywords

  • Coalition formation
  • Coalition-free inducement relations
  • CSSB
  • Invertible inducement relations
  • OSSB
  • Perfect foresight

ASJC Scopus subject areas

  • Decision Sciences(all)
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)
  • Computer Science Applications

Fingerprint Dive into the research topics of 'Stability and efficiency in perfect foresight situation'. Together they form a unique fingerprint.

  • Cite this