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Shaun Hargreaves Heap

Publications and source records attributed to Shaun Hargreaves Heap.

2 recordsLinked to original sources

How damaging is zero-sum thinking to an agent's interests when the world is positive-sum?

We study whether zero-sum decision rules, maximin and minimax, harm agents' interests in positive-sum games relative to Nash equilibrium behaviour or, more generally, than best response behaviour. Contrary to an influential evolutionary view, we give illustrations where maximin serves an agent's interests better than Nash equilibrium behaviour. Two new sets of results show that these illustrations are not idiosyncratic. First, for any selected Nash equilibrium in cardinal games, we construct a strategically equivalent game where a maximin profile yields the same pay-offs and we fully characterise when maximin can be made to Pareto dominate that Nash equilibrium and the entire Nash equilibrium set. Second, we show that the relevant Maximin Pareto dominance classes are not knife-edge: they are generically interior, and strict maximin profile dominance occurs on a non-empty open set if and only if a player has at least two actions and the other has at least three.

econ.TH↗

No-harm principle, rationality, and Pareto optimality in games

Mill's classic argument for liberty requires that people's exercise of freedom should be governed by a no-harm principle (NHP). In this paper, we develop the concept of a no-harm equilibrium in $n$-person games where players maximize utility subject to the constraint of the NHP. Our main result is in the spirit of the fundamental theorems of welfare economics. We show that for every initial `reference point' in a game the associated no-harm equilibrium is Pareto efficient and, conversely, every Pareto efficient point can be supported as a no-harm equilibrium for some initial reference point.

econ.TH↗