The structure of unstable power mechanisms
Journal article: We study the structure of unstable power mechanisms. A power mechanism is modeled by an interaction form, the solution of which is called a settlement. By stability, we mean the existence of some settlement for any preference profile. Configurations that produce instability are called cycles. We introduce a stability index that measures the difficulty of emergence of cycles. Structural properties such as exactness, superadditivity, subadditivity and maximality provide indications about the type of instability that may affect the mechanism. We apply our analysis to strategic game forms in the context of Nash-like solutions or core-like solutions. In particular, we establish an upper bound on the stability index of maximal interaction forms.
Author(s)
Joseph M. Abdou
Journal
- Economic Theory
Date of publication
- 2012
Keywords JEL
Keywords
- Interaction form
- Effectivity function
- Stability index
- Nash equilibrium
- Strong equilibrium
- Solvability
- Acyclicity
- Nakamura number
- Collusion
Pages
- 389 – 415
URL of the HAL notice
Version
- 1
Volume
- 50