We compare signaling by words and actions in a one-shot 2-person public good game with private information. The informed player, who knows the exact return from contributing, can signal by contributing first (actions) or by sending a costless message (words). Words can be about the return or...

We study the economic role of banks’ soft information, which evolved from repeated lending relationships, in the context of loan default. Using a proprietary database from one of the largest state-owned commercial banks in China, we find that the bank’s internal credit rating scores play a...

In repeated games with differential information on one side, the labelling "general case" refers to games in which the action of the informed player is not known to the uninformed, who can only observe a signal which is the random outcome of his and his opponent's action. Here we consider the...

We compare communication about private information to communication about actions in a one- shot 2-person public good game with private information. The informed player, who knows the exact return from contributing and whose contribution is unobserved, can send a message about the return or her...

Incentivicing doctors to take the costs of treatment into account in their prescription decision could lead to lower health care expenditures and higher welfare. This paper shows that also the opposite effects can result. The reason is a misalignment of doctor and patient incentives: Because of...

Recently a variety of link-based stability concepts have emerged in the literature on game theoretic models of social network formation.We investigate two basic formation properties that establish equivalence between some well known types of stable networks and their natural extensions.These...

This article investigates the structural position of covert (terrorist or criminal) networks. Using the secrecy versus information tradeoff characterization of covert networks it is shown that their network structures are generally not small-worlds, in contradistinction to many overt social...

This paper considers analogues of statements concerning compactness and finite coverings, in which the roles of spheres are replaced by cones. Furthermore, one of the finite covering results provides an application in Multi-Objective Programming; infinite sets of alternatives are reduced to...

Different axiomatic systems for the Shapley value can be found in the literature.For games with a coalition structure, the Shapley value also has been axiomatized in several ways.In this paper, we discuss a generalization of the Shapley value to the class of partition function form games.The...