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The equivalence between two-person symmetric games and decision problems

Working paper
Author/s: 
Ismail M.S.
Issue number: 
23.2014
Series: 
Maastricht University, Graduate School of Business and Economics (GSBE) Research Memorandum
Year: 
2014
PDF [1]
We illustrate an equivalence between the class of two-person symmetric games and the class of decision problems with a complete preference relation. Moreover, we show that a strategy is an optimal threat strategy Nash, 1953 in a two-person symmetric game if and only if it is a maximal element in its equivalent decision problem. In particular, a Nash equilibrium in a two-person symmetric zero-sum game and a pair of maximal elements in its equivalent decision problem coincide. In addition, we show that a two-person symmetric zero-sum game can be extended to its von Neumann-Morgenstern vN-M mixed extension if and only if the extended decision problem satisfies the SSB utility Fishburn, 1982 axioms. Furthermore, we demonstrate that a decision problem satisfies vN-M utility if and only if its equivalent symmetric game is a potential game. Accordingly, we provide a formula for the number of linearly independent equations in order for the independence axiom to be satisfied which grows quadratically as the number of alternatives increase.
Tags: 
Bargaining Theory [2]
Game Theory & Graphs [3]

Source URL:http://coalitiontheory.net/content/equivalence-between-two-person-symmetric-games-and-decision-problems

Links
[1] http://pub.maastrichtuniversity.nl/eb0758d3-d3ef-4dc9-ad4d-60f63d2d8d32 [2] http://coalitiontheory.net/research-areas/bargaining-theory [3] http://coalitiontheory.net/research-areas/game-theory-graphs