Is it always wise to disclose good news? When both the sender and the receiver have private information about the sender's quality, we find that the worst sender type with good news has the most incentive to disclose it, so reporting good news can paradoxically make the sender look bad. If the...

We study a strategic model of dynamic trading where agents are asymmetrically informed over common value sources of uncertainty. There is a continuum of uninformed buyers and a finite number of sellers, some of them informed. When there is only one seller, full information revelation never...

We consider an alternating offer bargaining model in which the players may agree to call in an arbitrator in case of disagreement. The main message of our study is that the mere presence of an arbitrator - who can only become active with the consent of both parties - in the background of...

We study how social norms and individual rationality in the process of coalition formation sustain a particular form of collective inefficiency, namely excessive entry in the joint production and exploitation of an excludable good. We term this phenomenon the `tragedy of the clubs'. We model...

An expanded model of value in cooperative games is presented in which value has either a linear or a proportional mode, and NTU value has either an input or an output basis. In TU games, the modes correspond to the Shapley (1953) and proportional (Feldman (1999) and Ortmann (2000)) values. In...

It is now almost a common truth that society needs to avoid environment contamination or damage become significant for nature protection programs of the government and wild life preservation efforts. A possible outcome of such efforts might occasionally be a voluntary solution, which results...

The stochastic evolutionary game literature is built on three behavioral postulates: ``noisy'' decisionmaking, myopic decisionmaking and random opportunities for choice (inertia). The role of noise is by now well- understood. This paper investigates the significance of the other two postulates....

Cooperative and noncooperative games have no representation of players's basis utilities. Basis utility is the natural reference point on a player's utility scale that enables the determination the marginal utility of any payoff or allocation. A player's basis utility can be determined by an...

In this paper we show that it is possible to manipulate market equilibria in an economy with profit maximizing agents (or agents with quasi-linear utility functions) by either destroying or withholding ones initial endowments.