The conventional search and matching model has been criticized for its inability to explain large cyclical volatility in the vacancy-unemployment ratio without ad hoc assumptions of wage rigidity. This paper presents a mechanism of such volatility without assuming wage rigidity by showing that...

This paper shows that a Nash equilibrium consisting of strategies of choosing a Pareto inefficient transition path is selected by households even without frictions as a result of the revealed government failure in supervision of financial markets. The Pareto inefficiency causes the generation of...

This paper exposes a formal model of the spiral of silence theory. It is based on game theoy. The game consists on three players: players 1 and two have two strategies, to speak (s) or not (~s); the third player is Nature, which decides whether players 1 and 2 agree in their opinion or not. If...

The article deals with problem of forming of Pareto non-optimal norms of mutual behavior of investors and government in the process of decision-making related to financing of reduction of risks of investment activity in economy. The game-theoretical analysis suggests that inefficiency of arising...

The theory of games (or game theory) is a mathematical theory that deals with the general features of competitive situations. It involves strategic thinking, and studies the way people interact while making economic policies, contesting elections and other such decisions. There are various types...

The aim of this paper is to introduce prospect theory in a game theoretic framework. We address the complexity of the weighting function by restricting the object of our analysis to a 2-player 2-strategy game, in order to derive some core results. We find that dominant and indifferent strategies...

This chapter presents a summary of recent results obtained in game and social choice theories, and highlights the application and the development of tools in algebraic topology. The purpose is expository: no attempt is made to provide complete proofs, for which references are given, nor to...

This paper proposes a novel explanation for the context dependency of individual choices in two-player games. Context dependency refers to the well-established phenomenon that a player, when choosing from a given opportunity set created by the other player’s strategy, chooses differently in...

The concept of basic needs is today at the center of many discussions about development and the international order. Some international organizations are rethinking their prior evaluation of development policies based largely on aggregate economic output, in particular, the welfare of the very...

Southern Sudan - the ten southern provinces of Sudan - has attained autonomy and may soon achieve total independence from Sudan. Yet decades of civil war not only prevented development but destroyed the infrastructure left over from the colonial period. While Southern Sudan is fortunate to have...