We study how a behavior (an idea, buying a product, having a disease, adopting a cultural fad or a technology) spreads among agents in an a social network that exhibits segregation or homophily (the tendency of agents to associate with others similar to themselves). Individuals are distinguished...

This paper introduces the notion of nested best response potentials for complete information games. It is shown that a unique maximizer of such a potential is a Nash equilibrium that is robust to incomplete information in the sense of Kajii and Morris (1997, mimeo).

Using an updated version of the CWS model (introduced by Eyckmans and Tulkens in Resource and Energy Economics 2003), this paper intends to evaluate with numbers the respective merits of two competing notions of coalition stability in the standard global public goods model as customarily applied...

We investigate the effects of forward looking behavior in technology adoption. The setup is an overlapping generation model where agents choose between two alternative networks taking in consideration both the installed base and the expected base. The latter element is the distinctive feature of...

An infinite-horizon, stochastic model of entry and exit with sunk costs and imperfect competition is constructed. Simple examples provide insights into: (1) the relationship between sunk costs and industry concentration, (2) entry when current profits are negative, and (3) the relationship...

We consider a dynamic two-country, two-commodity model in which each country specializes in the production of one commodity and trades with the other to consume both goods. The amount of capital used for production in one country generates externalities in the production of the other. This is...

Allocations of tradable greenhouse gases (GHG) emission quotas among countries may take place according to several sharing rules corresponding to a certain perception of equity. For instance, allocating quotas in direct proportion to population, in inverse relation to GDP or according to past...

This paper considers the well-known Levhari-Mirman model of resource extraction, and investigates the effects of the information structure of the dynamic game - open-loop, Markovian or history-dependent - on the equilibrium consumption path and the overall utility of the agents. The open-loop...

The motivation for this paper is to introduce trade in a dynamic model with capital interactions and to evaluate the consequences of trading on capital accumulation and market clearing prices. We consider a dynamic two-country, two-commodity model in which each country specializes in the...

It is shown that optimal penal codes are security level penal codes in a general class of stochastic dynamic Bertrand games with capacity constraints. This result allows a more complete study of the behavior of collusion over the business cycle. In an illustrative linear duopoly example with...