This paper yields sufficient conditions for Pareto inoptimality of controls forming Nash equilibria in differential games. In Appendix a result on existence of open loop Nash equilibria is added.

Consider a contract between two players, describing the payment an agent obtains from the principal, in exchange for a good or service supplied. At each point in time, either player may unilaterally demand a renegotiation of the contract, involving renegotiation costs for both players....

In a contest with positional dynamics between an incumbent and a challenger i) inequality of power may magnify conflicts, ii) more severe conflicts can go together with lower turnover of incumbents, and iii) power can be self defeating as cost advantages can reduce pay-offs. These three...

This paper reconsiders the Strotz-Pollak problem of consistent planning and argues that a solution to this problem requires a refinement of subgame-perfectness. Such refinement is offred through an analysis based on Greenberg's "theory of social situations". A unifying framework is presented...

We explore the implications of having a divided society where group leaders have motives for aggression towards other groups but where entrepreneurs have a desire for cooperation and peace. We assert that it is members of the elites who start conflicts and wage wars while the entrepreneurs...

This paper considers a sequence of discrete-time random walk markets with a single risky asset, and gives conditions for the existence of arbitrage opportunities or free lunches with vanishing risk, of the form of waiting to buy and selling the next period, with no shorting, and furthermore for...

Professor Leif Johansen (1930 – 1982) made significant contributions to a large number of fields in economics. A short survey of his contributions is presented. The main focus in the paper is on his growth – production program constituting an important part of his research. The key concepts...

Piecewise deterministic control problems are problems involving stochastic disturbance of a special type. In certain situations, in an otherwise deterministic control system, it may happen that the state jumps at certain stochastic points of time. Examples are sudden oil finds, or sudden...

The RAINS model is used to calculate cost minimising abatement policies subject to European-wide spatial restrictions on pollution. The principle for choosing environmental targets for the 1994 Oslo Protocol was closing a gap between benchmark- and critical loads for each grid with a uniform...

Benchmarking by means of applying the DEA model is appearing as an interesting alternative for regulators under the new regimes for electricity distributors. A sample of large electricity distribution utilities from Denmark, Finland, Norway, Sweden and the Netherlands for the year 1997 is...