Non-cooperative equilibrium with multiple deviators
CEPET Workshop. Central European Program in Economic Theory, 2016. No. 2016-2.
The paper defines a non-cooperative simultaneous game with a number of potential deviators being a parameter of the game. A definition of the game embeds a mechanism design. The game has an equilibrium in mixed strategies. The equilibrium encompasses intra and inter group externalities and an individual payoff allocation that make it different from a strong Nash, coalition-proof equilibrium and some other equilibrium concepts. We offer a non-cooperative stability criterion to describe a robustness of an equilibrium strategy profile to an increase in a number of deviators. The criterion may serve as a way to measure self-enforcement or a trust for the equilibrium in terms of a number of potential deviators and the mechanism design.