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Equilibrium Refinement in Dynamic Voting Games

28 Pages Posted: 19 Oct 2009  

Daron Acemoglu

Massachusetts Institute of Technology (MIT) - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Georgy Egorov

Northwestern University - Kellogg School of Management; NBER

Konstantin Sonin

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies; Higher School of Economics; Centre for Economic Policy Research (CEPR)

Date Written: October 16, 2009

Abstract

We propose two related equilibrium refinements for voting and agenda-setting games. Sequentially Weakly Undominated Equilibrium (SWUE) and Markov Trembling Hand Perfect Equilibrium (MTHPE), and show how these equilibrium concepts eliminate non-intuitive equilibria that arise naturally in dynamic voting games and games in which random or deterministic sequences of agenda-setters make offers to several players. We establish existence of these equilibria in finite and infinite (for MTHPE) games, provide a characterization of the structure of equilibria, and clarify the relationship between the two concepts. Finally, we show how these concepts can be applied in a dynamic model of endogenous club formation.

Keywords: voting, agenda-setting games, Markov trembling-hand perfect equilibrium

JEL Classification: D72, C73

Suggested Citation

Acemoglu, Daron and Egorov, Georgy and Sonin, Konstantin, Equilibrium Refinement in Dynamic Voting Games (October 16, 2009). MIT Department of Economics Working Paper No. 09-26. Available at SSRN: https://ssrn.com/abstract=1490164 or http://dx.doi.org/10.2139/ssrn.1490164

Daron Acemoglu (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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Georgy Egorov

Northwestern University - Kellogg School of Management ( email )

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Evanston, IL 60208
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NBER ( email )

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Konstantin Sonin

University of Chicago - Irving B. Harris Graduate School of Public Policy Studies ( email )

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United States

Higher School of Economics ( email )

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Moscow, 119017
Russia

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

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