A Method to Select Best Among Multi-Nash Equilibria

Autor:	Murugesan Punniyamoorthy, Sarin Abraham, Jose Joy Thoppan
Rok vydání:	2021
Předmět:	Computer Science::Computer Science and Game Theory symbols.namesake Computer science Nash equilibrium symbols General Economics Econometrics and Finance Mathematical economics
Zdroj:	Studies in Microeconomics. 11:101-127
ISSN:	2321-8398 2321-0222
DOI:	10.1177/23210222211024388
Popis:	A non-zero sum bimatrix game may yield numerous Nash equilibrium solutions while solving the game. The selection of a good Nash equilibrium from among the many options poses a dilemma. In this article, three methods have been proposed to select a good Nash equilibrium. The first approach identifies the most payoff-dominant Nash equilibrium, while the second method selects the most risk-dominant Nash equilibrium. The third method combines risk dominance and payoff dominance by giving due weights to the two criteria. A sensitivity analysis is performed by changing the relative weights of criteria to check its effect on the ranks of the multiple Nash equilibria, infusing more confidence in deciding the best Nash equilibrium. JEL Codes: C7, C72, D81
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::b6575abe649808f2f54be9be98b2d110 https://doi.org/10.1177/23210222211024388 Zobrazit plný text záznamu