Super-Nash Performance

TL;DR

This paper introduces super-Nash performance as a new benchmark in game theory and proposes the optimin solution concept, which guarantees players super-Nash payoffs and generalizes Nash equilibrium in certain games.

Contribution

The paper presents the optimin solution concept, a novel approach that ensures super-Nash payoffs and extends Nash equilibrium to n-person constant-sum games.

Findings

Optimin guarantees super-Nash payoffs in all Nash equilibria.

Optimin generalizes Nash equilibrium in n-person constant-sum games.

Optimin aligns with non-Nash deviations in cooperative games.

Abstract

In this paper, I introduce a novel benchmark in games, super-Nash performance, and a solution concept, optimin, whereby players maximize their minimal payoff under unilateral profitable deviations by other players. Optimin achieves super-Nash performance in that, for every Nash equilibrium, there exists an optimin where each player not only receives but also guarantees super-Nash payoffs under unilateral profitable deviations by others. Further, optimin generalizes Nash equilibrium in n-person constant-sum games and coincides with it when n=2. Finally, optimin is consistent with the direction of non-Nash deviations in games in which cooperation has been extensively studied.