Local dominance

We define a local notion of weak dominance that speaks to the true choice problems among actions in a game tree and does not necessarily require to plan optimally for the future. A strategy is (globally) weakly dominant if and only if it prescribes a locally weakly dominant action at every decision...

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Main Authors: CATONINI, Emiliano, XUE, Jingyi
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2020
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Online Access:https://ink.library.smu.edu.sg/soe_working_paper/2
https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1001&context=soe_working_paper
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Institution: Singapore Management University
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spelling sg-smu-ink.soe_working_paper-10012021-03-26T01:50:09Z Local dominance CATONINI, Emiliano XUE, Jingyi We define a local notion of weak dominance that speaks to the true choice problems among actions in a game tree and does not necessarily require to plan optimally for the future. A strategy is (globally) weakly dominant if and only if it prescribes a locally weakly dominant action at every decision node it reaches, and in this case local weak dominance is characterized by a (wishful-thinking) condition that requires no forward planning. From this local perspective, we identify form of contingent reasoning that are particularly natural, despite the absence of an obviously dominant strategy (Li, 2017). Following this approach, we construct a dynamic game that implements the Top Trading Cycles allocation under a notion of local obvious dominance that captures a form of independence of irrelevant alternatives. 2020-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_working_paper/2 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1001&context=soe_working_paper http://creativecommons.org/licenses/by-nc-nd/4.0/ SMU Economics and Statistics Working Paper Series eng Institutional Knowledge at Singapore Management University Weak dominance obvious dominance strategy-proofness implementation Economic Theory
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Weak dominance
obvious dominance
strategy-proofness
implementation
Economic Theory
spellingShingle Weak dominance
obvious dominance
strategy-proofness
implementation
Economic Theory
CATONINI, Emiliano
XUE, Jingyi
Local dominance
description We define a local notion of weak dominance that speaks to the true choice problems among actions in a game tree and does not necessarily require to plan optimally for the future. A strategy is (globally) weakly dominant if and only if it prescribes a locally weakly dominant action at every decision node it reaches, and in this case local weak dominance is characterized by a (wishful-thinking) condition that requires no forward planning. From this local perspective, we identify form of contingent reasoning that are particularly natural, despite the absence of an obviously dominant strategy (Li, 2017). Following this approach, we construct a dynamic game that implements the Top Trading Cycles allocation under a notion of local obvious dominance that captures a form of independence of irrelevant alternatives.
format text
author CATONINI, Emiliano
XUE, Jingyi
author_facet CATONINI, Emiliano
XUE, Jingyi
author_sort CATONINI, Emiliano
title Local dominance
title_short Local dominance
title_full Local dominance
title_fullStr Local dominance
title_full_unstemmed Local dominance
title_sort local dominance
publisher Institutional Knowledge at Singapore Management University
publishDate 2020
url https://ink.library.smu.edu.sg/soe_working_paper/2
https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1001&context=soe_working_paper
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