In this paper, we propose a game in which each player decides with whom to establish a costly connection and how much local public good is provided when benefits are shared among neighbors. We show that, when agents are homogeneous, Nash equilibrium networks are nested split graphs....

We study network formation with n players and link cost α 0. After the network is built, an adversary randomly deletes one link according to a certain probability distribution. Cost for player ν incorporates the expected number of players to which ν will become disconnected. We focus on...

We conduct an artefactual field experiment to compare the individual preferences and propensity to cooperate of three pools of subjects: Undergraduate students, temporary workers and permanent workers. We find that students are more selfish and contribute less than workers. Temporary and...

The literature on International Environmental Agreements (IEAs) predicts a rather low number of signatories to an IEA. This is in sharp contrast to empirical evidence. As experimental economics provides some evidence for more complex human behavior, extending the theory of IEAs to a broader...

Motivated by recent examples of collective effort on the war on terror, we examine the incentives that retaliation may produce for the endogenous formation of an international counterterror coalition. We show that there are quite reasonable circumstances under which any nation that is a target...

We study a game theoretic model of a parliamentary democracy under proportional representation where ideologically motivated citizen groups form parties, voting occurs and governments are formed. We study the coalition governments that emerge as functions of the parties' seat shares, the size of...

The literature on International Environmental Agreements (IEAs) predicts a rather low number of signatories to an IEA. This is in sharp contrast to empirical evidence. As experimental economics provides some evidence for more complex human behavior, extending the theory of IEAs to a broader...

Free riding incentives make it difficult to control climate change. To improve the chances of the Paris Agreement's ambitious goal, many nations are forming scientific networks in carbon capture and storage (CCS). These networks take many forms (bilateral, hub-and-spoke, and multilateral)....

A standard result of coalition formation games is that stable coalitions are very small if the coalition plays Nash vis-à-vis the rest of the world and if abatement costs are quadratic. It has been shown that larger coalitions and even the grand coalition are possible if the marginal abatement...

For 1990-2019, this study presents two-step GMM estimates of EU members' demands for defense spending based on alternative spatial-weight matrices. In particular, EU spatial connectivity is tied to EU membership status, members' contiguity, contiguity and power projection, inverse distance, and...