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A game-theoretical model of the landscape theory

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  • Le Breton, Michel
  • Shapoval, Alexander
  • Weber, Shlomo
Abstract
In this paper we examine a game-theoretical generalization of the landscape theory introduced by Axelrod and Bennett (1993). In their two-bloc setting each player ranks the blocs on the basis of the sum of her individual evaluations of members of the group. We extend the Axelrod–Bennett setting by allowing an arbitrary number of blocs and expanding the set of possible deviations to include multi-country gradual deviations. We show that a Pareto optimal landscape equilibrium which is immune to profitable gradual deviations always exists. We also indicate that while a landscape equilibrium is a stronger concept than Nash equilibrium in pure strategies, it is weaker than strong Nash equilibrium.

Suggested Citation

  • Le Breton, Michel & Shapoval, Alexander & Weber, Shlomo, 2021. "A game-theoretical model of the landscape theory," Journal of Mathematical Economics, Elsevier, vol. 92(C), pages 41-46.
    • Handle: RePEc:eee:mateco:v:92:y:2021:i:c:p:41-46
    DOI: 10.1016/j.jmateco.2020.11.004
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    Cited by:

    1. Kukushkin, Nikolai S., 2022. "Ordinal status games on networks," Journal of Mathematical Economics, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    Landscape theory; Landscape equilibrium; Blocs; Gradual deviation; Potential functions; Hedonic games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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