We call a correspondence, defined on the set of mixed strategy profiles, a generalized best reply correspondence if it has (1) a product structure, is (2) upper semi-continuous, (3) always includes a best reply to any mixed strategy profile, and is (4) convex- and closed-valued. For each...

This paper analyzes the stability of capital tax harmonization agreements in a stylized model where countries have formed coalitions which set a common tax rate in order to avoid the inefficient fully non-cooperative Nash equilibrium. In particular, for a given coalition structure we study to...

This article provides an exact non-cooperative foundation of the sequential Raiffa solution for two person bargaining games. Based on an approximate foundation due to Myerson (1997) for any two-person bargaining game (S, d) an extensive form game G^{S,d} is defined that has an infinity of weakly...

Top responsiveness is introduced by Alcalde and Revilla [Journal of Mathematical Economics 40 (2004) 869-887] as a property which induces a rich domain on playerss preferences in hedonic games, and guarantees the existence of core stable partitions. We strengthen this observation by proving the...

Riedel and Sass (2013) propose a framework for normal form games where players can use imprecise probabilistic devices. We extend this strategic use of objective ambiguity to extensive form games. We show that with rectangularity of Ellsberg strategies we have dynamic consistency in the sense of...

Motivated by trying to better understand the norms that govern pedestrian traffic, I study symmetric two-player coordination games with independent private values. The strategies of "always pass on the left" and "always pass on the right" are always equilibria of this game. Some such games,...

We define the logit dynamic for games with continuous strategy spaces and establish its fundamental properties, i.e. the existence, uniqueness and continuity of solutions. We apply the dynamic to the analysis of the Burdett and Judd (1983) model of price dispersion. Our objective is to assess...

How should we make value judgments about wealth inequality? Harsanyi (1953) proposes to take an individual who evaluates her well-being by expected utility and ask her to evaluate the wealth possibilities ex-ante (i.e. before she finds her place in society, i.e., under the "veil of ignorance" of...

We analyse finite two player games in which agents maximize given arbitrary private payoffs which we call ideologies. We define an equilibrium concept and prove existence. Based on this setup, a monotone evolutionary dynamic governs the distribution of ideologies within the population. For any...

We study a communication game of common interest in which the sender observes one of infinite types and sends one of finite messages which is interpreted by the receiver. In equilibrium there is no full separation but types are clustered into convex categories. We give a full characterization of...