Hidden Symmetries and Focal Points

39 Pages Posted: 20 Aug 2008 Last revised: 3 Apr 2012

Carlos Alós-Ferrer

University of Cologne - Department of Economics

Christoph Kuzmics

University of Graz - Department of Economics

Date Written: March 3, 2012

Abstract

We provide a general formal framework to define and analyze the concepts of focal points and frames for normal form games. The information provided by a frame is captured by a symmetry structure which is consistent with the payoff structure of the game. The set of symmetry structures has itself a clear structure (a lattice). Focal points are strategy profiles which respect the symmetry structure and are chosen according to some meta-norm, which is not particular to the framed game at hand.

Keywords: symmetry, focal points, frames, Nash equilibria

JEL Classification: C72, D83

Suggested Citation

Alós-Ferrer, Carlos and Kuzmics, Christoph, Hidden Symmetries and Focal Points (March 3, 2012). Available at SSRN: https://ssrn.com/abstract=1235942 or http://dx.doi.org/10.2139/ssrn.1235942

Carlos Alos-Ferrer

University of Cologne - Department of Economics ( email )

Cologne, 50923
Germany

Christoph Kuzmics (Contact Author)

University of Graz - Department of Economics ( email )

Universitaetsstrasse 15
RESOWI - F4
Graz, 8010
Austria

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