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https://doi.org/10.2139/ssrn.2054603
Copy DOIJournal: SSRN Electronic Journal | Publication Date: Jan 1, 2012 |
In this note we provide a strategic implementation of the average tree solution for zero-monotonic cycle-free graph games. That is, we propose a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the average hierarchical outcome of the game. This mechanism takes into account that a player is only able to communicate with other players (i.e., to make proposals about a division of the surplus of cooperation) when they are connected in the graph.
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