LUCAS COUNTER EXAMPLE REVISITED

We revisit Lucas’(1968) counter example for the existence of von Neumann and Morgenstern (1944) stable set (solution) for coalitional games. We show that when we endow the agents with foresight, particularly, when we replace von Neumann and Morgenstern’s (1944) dominance relation with the indirect dominance relations introduced by Harsanyi (1974), Lucas’s example admits a stable set.

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Year of publication:	2006-09
Authors:	Diamantoudi, Effrosyni ; Xue, Licun
Institutions:	Department of Economics, McGill University

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Extent:	application/pdf
Series:	Departmental Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	9 pages
Classification:	C71 - Cooperative Games
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005698067