A model of "satisficing" behavior in the repeated Prisoners Dilemma is studied. Each player has an aspiration at each date, and takes an action. [S]he switches from the action played in the previous period only if the achieved payoff fell below the aspiration level (with a probability that...

We experimentally investigate the effect of population viscosity (an increased probability to interact with others of one's type or group) on cooperation in a standard prisoner's dilemma environment. Subjects can repeatedly choose between two groups that differ in the defector gain in the...

The objective of this study is to analyze the macroeconomic performance of 16 Ibero- American countries over the period 1980- 199 1. Macroeconomic performance is defined as the ability of a country's macroeconomic managers to provide four welfare-enhancing economic services to their citizens: a...

Suppose that a group of individuals owns collectively a technology which produces a consumptiongood by means of a (possibly heterogeneous) input. A sharing rule associates input contributionswith a vector of consumptions that are technologically feasible. We show that the set of...

This paper studies implementation of cooperative payoffs in finitely repeated games when players implement their strategies by finite automata of big sizes. Specifically, we analyze how much we have to depart from fully rational behavior to achieve the Folk Theorem payoffs, i.e., which are the...

We characterize the incentive compatible allocation that maximizes the expected social surplus in a single-unit sale when the efficient allocation is not implementable. This allocation may involve no selling when it is efficient to sell. We then show that the English auction always implements...

The main contribution of this paper is to present a new procedure to reach cooperation through pseudorandom schemes in the finitely repeated Prisoner's Dilemma game, when strategies are implemented by automata. The equilibrium path consists of a communication process followed by a coordinated...

This paper develops a two-sector model for a renewable natural resource based economy. Pareto efficient results show the optimal harvesting rate that allows for sustained long-run optimal growth, which is upper-bounded by the biological rate of reproduction. Regulation prevents from resource...

Let µ be a rational distribution over a finite alphabet, and ( ) be a n-periodic sequences which first n elements are drawn i.i.d. according to µ. We consider automata of bounded size that input and output at stage t. We prove the existence of a constant C such that, whenever , with...

This paper presents a model of network formation with costly links. We endogenize the amount of cost born by each player involved in a bilateral link by considering that these shares result from bargaining. We analyze this feature in a context of coordination games. We show that, if the cost of...