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We characterize Nash equilibrium by postulating coherent behavior across varying games. Nash equilibrium is the only solution concept that satisfies the following axioms: (i) strictly dominant actions are played with positive probability, (ii) if a strategy profile is played in two games, it is...
Persistent link: https://www.econbiz.de/10015135350
Consider an urn filled with balls, each labeled with one of several possible collective decisions. Now let a random voter draw two balls from the urn and pick her more preferred as the collective decision. Relabel the losing ball with the collective decision, put both balls back into the urn,...
Persistent link: https://www.econbiz.de/10014576706
Gibbard and Satterthwaite have shown that the only single-valued social choice functions (SCFs) that satisfy nonimposition (i.e., the function's range coincides with its codomain) and strategyproofness (i.e., voters are never better off by misrepresenting their preferences) are dictatorships. In...
Persistent link: https://www.econbiz.de/10014325236