The subject of this study is an oligopolistic market in which three firms operate in an environment of quantitative competition known as the Cournot oligopoly model. Firms and their production are differentiated, which brings the theoretical model closer to real market conditions. The main...

Market power in water markets can be modeled as simultaneous quantity competition on a river structure and analyzed by applying social equilibrium. In an example of a duopoly water market, we argue that the lack of backward induction logic implies that the upstream supplier foregoes profitable...

This paper presents a simple adaptive model of demand adjustment in cooperative games and analyzes this model in weighted majority games. In the model, a randomly chosen player sets her demand to the highest possible value subject to the demands of other coalition members being satisfied. This...

Refinements of the Nash equilibrium have followed the strategy of extending the idea of subgame perfection to incomplete information games. This has been achieved by appropriately restricting beliefs at unreached information sets. Each new refinement gives stricter and more...

The problem of the existence of Berge equilibria in the sense of Zhukovskii in normal-form finite games in pure and in mixed strategies is studied. The example of a three-player game that has Berge equilibrium neither in pure, nor in mixed strategies is given.

I study the path properties of adaptive heuristics that mimic the natural dynamics of play in a game and converge to the set of correlated equilibria. Despite their apparent differences, I show that these heuristics have an abstract representation as a sequence of probability distributions that...

We consider non-zero sum bi-matrix games where one player presumes the role of a leader in the Stackelberg model, while the other player is her follower. We show that the leader can improve her reward if she can incentivise her follower by paying some of her own utility to the follower for...

In (Bonanno, 2013), a solution concept for extensive-form games, called perfect Bayesian equilibrium (PBE), was introduced and shown to be a strict refinement of subgame-perfect equilibrium; it was also shown that, in turn, sequential equilibrium (SE) is a strict refinement of PBE. In (Bonanno,...

Intuitively, we expect that players who are allowed to engage in costless communication before playing a game would be foolish to agree on an inefficient outcome amongst the set of equilibria. At the same time, however, such preplay communication has been suggested as a rationale for expecting...

Standard equilibrium concepts in game theory find it difficult to explain the empirical evidence from a large number of static games, including the prisoner's dilemma game, the hawk-dove game, voting games, public goods games and oligopoly games. Under uncertainty about what others will do in...