Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7372897 | Mathematical Social Sciences | 2018 | 14 Pages |
Abstract
This paper studies the role of strategic uncertainty in the Nash demand game. A player's uncertainty about another player's strategy is modeled as an atomless probability distribution over that player's strategy set. A strategy profile is robust to strategic uncertainty if it is the limit, as uncertainty vanishes, of some sequence of strategy profiles in which every player's strategy is optimal under his or her uncertainty about the others (Andersson et al., 2014). In the context of the Nash demand game, we show that robustness to symmetric (asymmetric) strategic uncertainty singles out the (generalized) Nash bargaining solution. The least uncertain party obtains the bigger share.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
Ola Andersson, Cédric Argenton, Jörgen W. Weibull,