Title: Nash Equilibrium of Team Production and the Cooperative Game Space
Abstract: The paper suggested that,on the base of B.Holmstrom's contribution,the team production problem was essentially equal to the prisoners' dilemma problem,and pointed out a logical flaw of B.Holmstrom's solution for forcing contracts which was ineffective in the real society.The cooperative(strategy)game space was defined,on the condition of social-economic man's maximum utility.The culmination of the space(maximum utility of individual) was the Nash equilibrium of team production returns allocation game.If the sum of individuals' returns is equal to the collectivity's optimal return,individual rationality is compatible with collectivity rationality with Pareto optimality,when there's no moral hazard problem.Otherwise,there's moral hazard inevitably.The special sample was given to elucidate team production achieving Pareto optimality by varying cooperative strategy game space and the importance of varying cooperative strategy game space scientifically in social economic development was pointed out.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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