Focal Points in Framed Games : Breaking the Symmetry /
This book introduces a new rationalistic approach towards the formalization of Schelling's concept of focal points within a general game-theoretic framework. The focus is on focal points as a symmetry-breaking device. Hence, focal points in coordination games can be explained while focal points...
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| Format: | eBook |
| Language: | English |
| Published: |
Berlin, Heidelberg :
Springer Berlin Heidelberg,
2001.
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| Series: | Lecture notes in economics and mathematical systems ;
499. |
| Subjects: | |
| Online Access: | Connect to the full text of this electronic book |
| Summary: | This book introduces a new rationalistic approach towards the formalization of Schelling's concept of focal points within a general game-theoretic framework. The focus is on focal points as a symmetry-breaking device. Hence, focal points in coordination games can be explained while focal points in bargaining are out of reach. Strategic/extensive games are extended into framed strategic/extensive games (FSGs/FEGs) by adding a structure-frame - which represents the player's perception of their strategies/actions by assigning a multi-demensional label to each strategy/action. A language invariance requirement similar to Harsanyi & Selten's invariance with respect to isomorphisms then ensures a solution's independence from the game theorist's (arbitrary) choice of these labels. In many interesting cases, focal points can be characterized as the unique payoff-dominant language-invariant equilibria of the underlying framed games. |
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| Item Description: | Electronic resource. |
| Physical Description: | 1 online resource (xi, 131 pages) |
| ISBN: | 9783642511127 (electronic bk.) 3642511120 (electronic bk.) |
| ISSN: | 0075-8442 ; |