Theories of Coalitional Rationality

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Theories of Coalitional Rationality

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Title: Theories of Coalitional Rationality
Author: Ambrus, Attila
Citation: Ambrus, Attila. 2009. Theories of coalitional rationality. Journal of Economic Theory 144(2): 676-695.
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Abstract: This paper generalizes the concept of best response to coalitions of players and offers epistemic definitions of coalitional rationalizability in normal form games. The (best) response of a coalition is defined to be an operator from sets of conjectures to sets of strategies. A strategy is epistemic coalitionally rationalizable if it is consistent with rationality and common certainty that every coalition is rational. A characterization of this solution set is provided for operators satisfying four basic properties. Special attention is devoted to an operator that leads to a solution concept that is generically equivalent to the iteratively defined concept of coalitional rationalizability.
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