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Dynamic collective choice with endogenous status quo

Dziuda, Wioletta; Loeper, Antoine - 2012 - First version: December 2009

This paper analyzes an ongoing bargaining situation in which preferences evolve over time and the previous agreement becomes the next status quo, determining the payoffs until a new agreement is reached. We show that the endogeneity of the status quo exacerbates the players' conflict of interest...

Persistent link: https://www.econbiz.de/10008748538

Collective Choice in Dynamic Public Good Provision

Bowen, T. Renee - 2018

Two heterogeneous agents contribute over time to a joint project, and collectively decide its scope. A larger scope requires greater cumulative effort and delivers higher benefits upon completion. We show that the efficient agent prefers a smaller scope, and preferences are time-inconsistent: as...

Persistent link: https://www.econbiz.de/10012936889

Strongly Rationalizable Virtual Implementation in Social Environments With Evidence

Cusumano, Carlo - 2020

This article investigates rationalizable implementation in social environments where agents can provide hard evidence on the private information they possess. Specifically, we study necessary and sufficient conditions for virtual implementation using a notion of Rationalizability that captures...

Persistent link: https://www.econbiz.de/10012824770

On the Samaritan's Dilemma, foreign aid, and freedom

Faria, João Ricardo; Arce M., Daniel G. - In: Economies : open access journal 6 (2018) 4/53, pp. 1-17

This paper presents an extension of the two-period Samaritan’s Dilemma in order to analyze the potential for foreign aid to promote freedom. An example is the United States’ recent opening towards Cuba. It is shown that a donor nation’s dual concern for economic reforms and greater...

Persistent link: https://www.econbiz.de/10011956523

Harnessing Reciprocity to Promote Cooperation and the Provisioning of Public Goods

Rand, David G.; Yoeli, Erez; Hoffman, Moshe - 2015

How can we maximize the common good? This is a central organizing question of public policy design, across political parties and ideologies. The answer typically involves the provisioning of public goods such as fresh air, national defense, and knowledge. Public goods are costly to produce but...

Persistent link: https://www.econbiz.de/10014037089

Policy Competition, Imitation and Coordination Under Uncertainty

Hefeker, Carsten - 2022

The paper analyzes under what circumstances policymakers experiment with policies with uncertain outcomes, when they prefer to imitate policies initiated in other countries, and when they prefer to coordinate policies internationally. Policymakers have private costs of active policies and...

Persistent link: https://www.econbiz.de/10013289693

Riskiness, risk aversion, and risk sharing: cooperation in a dynamic insurance game

Laczó, Sarolta (contributor) - 2008

This paper examines how cooperation in an insurance game depends on risk preferences and the riskiness of income. It … of the discount factor above which perfect risk sharing is self-enforcing. When agents face no aggregate risk, there is … of idiosyncratic and aggregate risk. In the case of exponential (isoelastic) utility, cooperation depends positively on …

Persistent link: https://www.econbiz.de/10003770693

The rise and fall of the Great Fish Pact under endogenous risk of stock collapse

Walker, Adam N.; Weikard, Hans-Peter; Richter, Andries - 2015

Risk of stock collapse is a genuine motivation for cooperative fisheries management. We analyse the effect of an … endogenously determined risk of stock collapse on the incentives to cooperate in a Great Fish War model. We establish that … offset the increased benefits from cooperation due to the presence of endogenous risk and the Great Fish Pact returns to …

Persistent link: https://www.econbiz.de/10011287058

Preemption Games Under Levy Uncertainty

Boyarchenko, Svetlana - 2011

We study a stochastic version of Fudenberg and Tirole's (1985) preemption game to analyze the effects of jumps in the underlying uncertainty on equilibrium strategies. Two firms contemplate entering a new market where the demand follows a jump-diffusion process. Firms differ is the sunk costs of...

Persistent link: https://www.econbiz.de/10013125149

Do Increases in Environmental Risk Reduce Welfare? A Dynamic Game Perspective

Benchekroun, Hassan - 2013

We consider the effect of an increase in the risk from pollution. We show that in the case of a flow pollution, when … the number of players is sufficiently large, the result of Bramoulle and Treich, showing that a marginal increase of risk … in the neighborhood of a risk-free world is welfare-improving, holds even when we consider non-marginal increases in risk …

Persistent link: https://www.econbiz.de/10013081942

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