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The Myopic Stable Set for Social Environments
Author(s) -
Demuynck Thomas,
Herings P. JeanJacques,
Saulle Riccardo D.,
Seel Christian
Publication year - 2019
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta14954
Subject(s) - set (abstract data type) , economics , mathematical economics , econometrics , mathematics , computer science , programming language
We introduce a new solution concept for models of coalition formation, called the myopic stable set (MSS). The MSS is defined for a general class of social environments and allows for an infinite state space. An MSS exists and, under minor continuity assumptions, it is also unique. The MSS generalizes and unifies various results from more specific applications. It coincides with the coalition structure core in coalition function form games when this set is nonempty; with the set of stable matchings in the Gale–Shapley matching model; with the set of pairwise stable networks and closed cycles in models of network formation; and with the set of pure strategy Nash equilibria in pseudo‐potential games and finite supermodular games. We also characterize the MSS for the class of proper simple games.