Von Neumann-Morgenstern stable sets, discounting, and Nash bargaining |
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Authors: | Klaus Kultti |
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Affiliation: | a Department of Economics, University of Helsinki, Finland b Yrjö Jahnsson Foundation, Ludviginkatu 3-5, 00130 Helsinki, Finland |
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Abstract: | We establish a link between von Neumann-Morgenstern stable set and the Nash solution in a general n-player utility set. The stable set-solution is defined with respect to a dominance relation: payoff vector u dominates v if one player prefers u even with one period delay. We show that a stable set exists and, if the utility set has a smooth surface, any stable set converges to the Nash bargaining solution when the length of the period goes to zero. |
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Keywords: | C78 D70 |
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