Holding a Group Together: Non-Game Theory Versus Game Theory

Michael Richter, Ariel Rubinstein

    Research output: Contribution to journalArticlepeer-review


    Each member of a group chooses a position and has preferences regarding his chosen position. The group's harmony depends on the profile of chosen positions meeting a specific condition. We analyse a solution concept (Richter and Rubinstein, 2020) based on a permissible set of individual positions, which plays a role analogous to that of prices in competitive equilibrium. Given the permissible set, members choose their most preferred position. The set is tightened if the chosen positions are inharmonious and relaxed if the restrictions are unnecessary. This new equilibrium concept yields more attractive outcomes than does Nash equilibrium in the corresponding game.

    Original languageEnglish (US)
    Pages (from-to)2629-2641
    Number of pages13
    JournalEconomic Journal
    Issue number638
    StatePublished - Aug 1 2021

    ASJC Scopus subject areas

    • Economics and Econometrics


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