We study a class of common-value second-price auctions with differential information. This class of common-value auctions is characterized by the property that each player's information set is connected with respect to the common value. We showthat the entire class is dominance solvable, and...

If buyers do not observe the quality of a product and production of quality is costly, market allocations can be very inefficient. Certification intermediaries are institutions that provide information about quality to buyers. The amount of information in the market determines the incentives...

We combine the newest concepts o non-cooperative coalition theory with a computable general equilibrium model close to the seminal RICE-model of Nordhaus and Yang (1996) to determine stable coalition structures in a global warming game. We consider three coalition games that allow for the...

We develop a model of bargaining that provides a rationality for the difference in the method of negotiation, depending on the nature of the conflict. We distinguish negotiations previous to a potential conflict, and negotiations during a conflict. In these contexts, we study the role of a...

Game theoretic models of voter turnout have recently fallen into disrepute because the crucial ingredient of the model, the probability of being pivotal for an individual voter, is infinitesimal in large elections. Moreover such models are plagued by the problem of multiple equilibria. We show...

In normal-form games, rationalizability (Bernheim [3], Pearce [11]) on its own fails to exclude some very implausible strategy choices. Three main refinements of ra- tionalizability have been proposed in the literature: cautious, perfect, and proper rationalizability. Nevertheless, some of these...

In this note we discuss two examples of appoval voting games. The first one, with six voters and three candidates, has a unique stable set,where each voter approves only his most preferred candidate. This strategy coincides with the sophisticated one, while other strategy combinations, leading...

We present a feasible strategic market mechanism with finitely many agents whose Nash, semi-strong Nash and coalition-proof Nash equilibria fully implement the Walrasian equilibria. We define a strategic equilibrium concept, called correlated semi-strong equilibrium, and show that the Walrasian...

Two incumbent parties choose their platforms in a unidimensional policy space while facing a credible threat of an entry by the third party. Relative electoral support is the predominant objective of each party, and the third party enters only if it can displace one of the incumbents. In an...

This paper reinterprets by [gamma]-core (Chander and Tulkens (1995, 1997)) and justifies it as well as its prediction that the efficient coalition structure is stable in terms of the coalition formation theory. It is assumed that coalitions can freely merge or break apart, are farsighted (that...