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We study the stability properties of organizations in partition function games, describing cooperative situations with externalities. An organization is defined as a group of agents, together with a set of bilateral relations, formally, a connected graph. Because of the presence of...
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Almost all economic and public choice models assume that all people are exclusively pursuing their own material self-interests and do not care about "social" goals per se. Several (laboratory) experiments address the question of the general validity of this assumption. A consistent conclusion...
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Community enforcement is an important device for sustaining efficiency in some repeated games of cooperation. We … investigate cooperation when information about players' reputations spreads to their future partners through links in a social … network that connects them. We find that information supports cooperation by increasing trust between players, and obtain the …
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