This paper develops and estimates a game-theoretical model of inflation targeting where the central banker's preferences are asymmetric around the targeted rate.

According to Some Scholars Who Wrote on Risk-Taking, the Question Why Are There Multiple Prizes in Lottery Games Seems to Be - Quotes Milton Friedman - "One of the Chief Intellectual Issues Open in This Area". Elying on Brenner's (1983, 1985, 1987) Model, a Straightforward Explanation Can Be...

A contingent contract in a transferable utility game under uncertainty specifies an outcome for each possible state. It is assumed that coalitions evaluate these contracts by considering the minimal possible excesses. A main question of the paper concerns the existence and characterization of...