Nash Consistent Representation of Effectivity Functions Through Lottery Models

B. Peleg, H.J.M. Peters

Research output: Contribution to journalArticleAcademicpeer-review

4 Citations (Scopus)

Abstract

Effectivity functions for finitely many players and alternatives are considered. It is shown that every monotonic and superadditive effectivity function can be augmented with equal chance lotteries to a finite lottery model—i.e., an effectivity function that preserves the original effectivity in terms of supports of lotteries—which has a nash consistent representation. The latter means that there exists a finite game form which represents the lottery model and which has a nash equilibrium for any profile of utility functions satisfying the minimal requirement of respecting first order stochastic dominance among lotteries. No additional condition on the original effectivity function is needed.
Original languageEnglish
Pages (from-to)503-515
Number of pages13
JournalGames and Economic Behavior
Volume65
DOIs
Publication statusPublished - 1 Jan 2009

Cite this