A Difficulty with Nash's Program: A Proof of a Special Case

Bezalel Peleg

Let g be a cooperative game and let N be the set of players of g. According to Nash's Program N can find a noncooperative game G such that some Nash equilibrium of G may serve as a solution to g. We show that the implementation of Nash's Program might face some difficulties. In this paper we restrict ourselves to finite games. However, we proved in a previous unpublished paper that the same difficulties also appear when infinite games are allowed.

December, 1996
Published in: 
Economics Letters 55 (1997), 305-308