This paper develops and estimates a game-theoretical model of inflation targeting where the central banker's preferences are asymmetric around the targeted rate.

In this paper we will describe a class of three-person games and draw general conclusions about non-cooperative behavior in them.

Did the recent transition to liberal democracy in Eastern Europe consitute revolutions? Here, game theory is used to structure an explanation of institutional change proposed by Harold Innis (1950).

A contingent contract in a transferable utility game under uncertainty specifies an outcome for each possible state. It is assumed that coalitions evaluate these contracts by considering the minimal possible excesses. A main question of the paper concerns the existence and characterization of...