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The testable implications of zero-sum games
Authors:SangMok Lee
Institution:Division of the Humanities and Social Sciences, 228-77, California Institute of Technology, Pasadena, CA, 91125, United States
Abstract:We study collective choices from the revealed preference theory viewpoint. For every product set of individual actions, joint choices are called Nash-rationalizable if there exists a preference relation for each player such that the selected joint actions are Nash equilibria of the corresponding game. We characterize Nash-rationalizable joint choice behavior by zero-sum games, or games of conflicting interests. If the joint choice behavior forms a product subset, the behavior is called interchangeable. We prove that interchangeability is the only additional empirical condition which distinguishes zero-sum games from general non-cooperative games.
Keywords:Interchangeability  Nash-rationalizability  Revealed preference  Zero-sum game
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