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Theory and Decision

, Volume 40, Issue 1, pp 1–27 | Cite as

On games under expected utility with rank dependent probabilities

  • Klaus Ritzberger
Article

Abstract

Expected utility with rank dependent probabilities is a generalization of expected utility. If such preference representations are used for the payoffs in the mixed extension of a finite game, Nash equilibrium may fail to exist. Set-valued solutions, however, do exist even for those more general utility functions. But some set-valued solutions may have certain conceptual shortcomings. The paper thus proposes a new set-valued solution concept, called fixed sets under the best reply correspondence. All set-valued solution concepts are robust to perturbations of the expected utility hypothesis.

Key words

Non-expected utility non-cooperative normal-form games setvalued solutions 

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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Klaus Ritzberger
    • 1
  1. 1.Dept. of EconomicsInstitute for Advanced StudiesViennaAustria

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