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Robustness to strategic uncertainty in the Nash demand game
KTH, School of Engineering Sciences (SCI), Mathematics (Dept.). Stockholm School of Economics, Sweden.
2018 (English)In: Mathematical Social Sciences, ISSN 0165-4896, E-ISSN 1879-3118, Vol. 91, p. 1-5Article in journal (Refereed) Published
Abstract [en]

This paper studies the role of strategic uncertainty in the Nash demand game. A player's uncertainty about another player's strategy is modeled as an atomless probability distribution over that player's strategy set. A strategy profile is robust to strategic uncertainty if it is the limit, as uncertainty vanishes, of some sequence of strategy profiles in which every player's strategy is optimal under his or her uncertainty about the others (Andersson et al., 2014). In the context of the Nash demand game, we show that robustness to symmetric (asymmetric) strategic uncertainty singles out the (generalized) Nash bargaining solution. The least uncertain party obtains the bigger share.

Place, publisher, year, edition, pages
Elsevier, 2018. Vol. 91, p. 1-5
National Category
Mathematics
Identifiers
URN: urn:nbn:se:kth:diva-219637DOI: 10.1016/j.mathsocsci.2017.10.007ISI: 000424960600001Scopus ID: 2-s2.0-85035148776OAI: oai:DiVA.org:kth-219637DiVA, id: diva2:1164513
Funder
Ragnar Söderbergs stiftelse
Note

QC 20171211

Available from: 2017-12-11 Created: 2017-12-11 Last updated: 2018-03-05Bibliographically approved

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Weibull, Jörgen W.

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  • Other locale
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