40 research outputs found
Characterizations of perfect recall
This paper considers the condition of perfect recall for the class of arbitrarily large discrete extensive form games. The known definitions of perfect recall are shown to be equivalent even beyond finite games. Further, a qualitatively new characterization in terms of choices is obtained. In particular, an extensive form game satisfies perfect recall if and only if the set of choices, viewed as sets of ultimate outcomes, fulfill the Trivial Intersection property, that is, any two choices with nonempty intersection are ordered by set inclusion
Multiple Objective Step Function Maximization with Genetic Algorithms and Simulated Annealing
Abstract: We develop a hybrid algorithm using Genetic Algorithms (GA) and Simulated Annealing (SA) to solve multi-objective step function maximization problems. We then apply the algorithm to a specific economic problem which is taken out of the corporate governance literature.
Equilibrium Selection and Altruistic Behavior in Noncooperative Social Networks
Given their importance in determining the outcome of many economic interactions,
different models have been proposed to determine how social networks
form and which structures are stable. In Bala and Goyal (Econometrica 68, 1181–
1229, 2000), the one-sided link formation model has been considered, which is based
on a noncooperative game of network formation. They found that the empty networks,
the wheel in the one-way flow of benefits case and the center-sponsored star
in the two-way flow case play a fundamental role since they are strict Nash equilibria
of the corresponding games for a certain class of payoff functions. In this paper,
we first prove that all these network structures are in weakly dominated strategies
whenever there are no strict Nash equilibria. Then, we exhibit a more accurate selection
device between these network architectures by considering “altruistic behavior”
refinements. Such refinements that we investigate here in the framework of finite
strategy sets games have been introduced by the authors in previous papers