Showing 1 - 10 of 118
We propose a formal way to systematically study the differential effects of exogenous shocks in economic models with heterogeneous agents. Our setting applies to models that can be rephrased as "competition for market shares" in a broad sense. We show that even in presence of any number of...
Persistent link: https://www.econbiz.de/10011565219
It is shown that the n-player lottery contest admits a best-response potential (Voorneveld, 2000, Economics Letters). This is true also when the contest technology reflects the possibility of a draw. The result implies, in particular, the existence of a non-trivial two-player zero-sum game that...
Persistent link: https://www.econbiz.de/10012963488
This paper examines multi-battle contests whose extensive form can be represented in terms of a finite state machine. We start by showing that any contest that satisfies our assumptions decomposes into two phases, a principal phase (in which states cannot be revisited) and a concluding...
Persistent link: https://www.econbiz.de/10012891585
We introduce a simple two-stage game of endogenous network formation and information sharing for reasoning about the optimal design of social networks like Facebook or Google. We distinguish between unilateral and bilateral connections and between targeted and collective information sharing....
Persistent link: https://www.econbiz.de/10013055757
It is shown that the n-player lottery contest admits a best-response potential (Voorneveld, 2000, Economics Letters). This is true also when the contest technology reflects the possibility of a draw. The result implies, in particular, the existence of a nontrivial example of a strictly...
Persistent link: https://www.econbiz.de/10011598578
This paper examines multi-battle contests whose extensive form can be represented in terms of a finite state machine. We start by showing that any contest that satisfies our assumptions decomposes into two phases, a principal phase (in which states cannot be revisited) and a concluding...
Persistent link: https://www.econbiz.de/10011981199
We propose a general approach to study the differential effects of exogenous shocks in economic models with heterogeneous agents. Our setting applies to models that can be stated as ``competition for market shares'' in a broad sense. Examples that fit our type of structure are ubiquitous in...
Persistent link: https://www.econbiz.de/10014124140
Payoff security combined with reciprocal upper semicontinuity is sufficient for better-reply security, and consequently for the existence of a pure strategy Nash equilibrium in compact, quasiconcave games by Reny's (1999) theorem. Analogously, diagonal payoff security combined with upper...
Persistent link: https://www.econbiz.de/10013341982
As pointed out by Sion and Wolfe (1957), a non-cooperative game on the unit square need not admit a Nash equilibrium, neither in pure nor in randomized strategies. In this paper, we consider finite approximations of the Sion-Wolfe game. For all parameter constellations relevant for the limit...
Persistent link: https://www.econbiz.de/10014331893
This paper studies the dynamic construction of a blockchain by competitive miners. In contrast to the literature, we assume a finite time horizon. Moreover, miners are rewarded for blocks that eventually become part of the longest chain. It is shown that popular mining strategies such as...
Persistent link: https://www.econbiz.de/10012827846