Abstract

We study the stable standard of behavior in a perfect foresight situation that was introduced by Xue. We assume that the inducement relations are invertible and coalition free. We show that the conditions are sufficient for the existence of the nonempty-valued optimistic/conservative stable standard of behavior for perfect foresight situation. Moreover, we find that an OSSB-PF supports a Pareto-efficient outcome as a stable outcome; if the preference relations are strict, only the Pareto-efficient outcomes are supported by the OSSB-PF.