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...

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...

In this paper, we present an application of the dynamic tracking games framework to a monetary union. We use a small stylized nonlinear three-country macroeconomic model of a monetary union to analyze the interactions between fiscal (governments) and monetary (common central bank) policy makers,...

We explore how an incremental change in complexity of strategies ("an inch of memory") in repeated interactions influences the sets of Nash equilibrium (NE) strategy and payoff profiles. For this, we introduce the two most basic setups of repeated games, where players are allowed to use only...

Successful algorithms have been developed for computing Nash equilibrium in a variety of finite game classes. However, solving continuous games - in which the pure strategy space is (potentially uncountably) infinite - is far more challenging. Nonetheless, many real-world domains have continuous...

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.

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...

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...

We extend a standard two-person, non-cooperative, non-zero sum, imperfect inspection game, considering a large population of interacting inspectees and a single inspector. Each inspectee adopts one strategy, within a finite/infinite bounded set of strategies returning increasingly illegal...

This paper develops a dynamic model of tender offers in which there is trading on the target's shares during the takeover, and bidders can freeze out target shareholders (compulsorily acquire remaining shares not tendered at the bid price), features that prevail on almost all takeovers. We show...