Showing 1 - 10 of 38
We study both theoretically and experimentally the complete set of Nash equilibria of a classical one-dimensional, majority rule election game with two candidates, who might be interested in power as well as in ideology, but not necessarily in the same way. Apart from obtaining the well known...
Persistent link: https://www.econbiz.de/10009292395
The endogeneity of equilibrium strategies makes modelling uncertainty about the behaviour of other economic players difficult. Recent developments in decision and game theory offer an opportunity to include strategic uncertainty as an explanatory variable in economic analysis. This paper...
Persistent link: https://www.econbiz.de/10005086687
In the Crawford-Sobel (uniform, quadratic utility) cheap-talk model we allow for mediation in which the informed agent reports one possible element of a partition to a mediator (a communication device) and then the mediator suggests an action to the uninformed decision-maker according to the...
Persistent link: https://www.econbiz.de/10005086703
If an inspector is work averse and his effort spent on investigating reports is not observable this creates a moral hazard problem whenever there is an imperfect monitoring technology. This problem arises because the organization can not distinguish between an inspection that doesn't find...
Persistent link: https://www.econbiz.de/10005086713
We study dominant strategy implementation in the compromise setting of Borgers and Postl (2006), in which two agents have to choose one of three mutually exclusive alternatives. The agents' ordinal rankings of these three alternatives are commonly known among them, and they are diametrically...
Persistent link: https://www.econbiz.de/10005357545
This paper introduces E-capacities as a representation of beliefs which incorporates objective information about the probability of events. It can be shown that the Choquet integral of an E-capacity is the Ellsberg representation. The paper further explores properties of this representation of...
Persistent link: https://www.econbiz.de/10005357547
We examine the effects of giving incentives for people to report crime on crime rates. In particular, we look at what happens when the costs of reporting are negligible and the cost of being interrogated by the police are high in a rational choice model of crime and crime reporting. Perverse...
Persistent link: https://www.econbiz.de/10005357586
We view achieving a particular correlated equilibrium distribution for a normal form game as an implementation problem. We show, using a parametric version of the two-person Chicken game and a wide class of correlated equilibrium distributions, that a social choice function that chooses a...
Persistent link: https://www.econbiz.de/10005357606
We study the question whether procurement procedures that simultaneously determine specification and price of a good can result in an inefficient specification choice. Two suppliers can produce a good in either of two specifications, and both are equally good for the buyer. Costs are...
Persistent link: https://www.econbiz.de/10005357609
For duopoly models, we analyse the concept of coarse correlated equilibrium using simple symmetric devices that the players choose to commit to in equilibrium. In a linear duopoly game, we provice that Nash-centric devices, involving a sunspot structure, are simple symmetric coarse correlated...
Persistent link: https://www.econbiz.de/10009652076