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On Potential Maximization as a Refinement of Nash Equilibrium

Working paper
Author/s: 
Rod Garratt and Cheng-Zhong Qin
Economics Bulletin
Issue number: 
No. 12
Series: 
Vol. 3
Year: 
2003
Journal pages: 
1−11
PDF [1]
We specify an adjustment process that converges to the set of potential−maximizing strategy profiles for 3−player cooperation−formation games or n−player cooperation−formation games based on a superadditive characteristic function. Our analysis provides a justification for potential maximization as a refinement of Nash equilibrium in these settings.
Tags: 
Coalition Formation Theory [2]

Source URL:http://coalitiontheory.net/content/potential-maximization-refinement-nash-equilibrium

Links
[1] http://www.economicsbulletin.com/2003/volume3/EB-03C70001A.pdf [2] http://coalitiontheory.net/research-areas/coalition-formation-theory