Abstract:

Given any finite-player finite-action perfect information sequential game, if players can offer action-conditional utility transfers to the moving player sequentially at every history ("bid" for actions), every Markov perfect equilibrium results in a utilitarian-efficient outcome, maximizing the sum of all players’ utilities. In equilibrium players bid "pivotally," offering just enough to change which action is the most valuable, taking into account the bids and utilities of other players.

Joint work with Nate Neligh

Location:

Room 2E29, CEPS ENS Paris-Saclay
4 avenue des Sciences, 91190, Gif-sur-Yvette