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...

We propose a framework in order to econometrically estimate case-based learning and apply it to empirical data from twelve 2 × 2 mixed strategy equilibria experiments. Case-based learning allows agents to explicitly incorporate information available to the experimental subjects in a simple,...

We investigate the role and performance of imitative behavior in a class of quantity-setting, Cournot games. Within a framework of evolutionary competition between rational, myopic best-response and imitation heuristics with differential heuristics' costs, we found that the equilibrium stability...

A game between a representative household and a government was analyzed. The household chose which fractions of two currencies to hold, e.g., a national currency such as a Central Bank Digital Currency (CBDC) and a global currency such as Bitcoin or Facebook's Diem, and chose the tax evasion...

We propose a bargaining process supergame over the strategies to play in a non-cooperative game. The agreement reached by players at the end of the bargaining process is the strategy profile that they will play in the original non-cooperative game. We analyze the subgame perfect equilibria of...

This paper analyzes the dynamic stability of moral codes in a two population trust game. Guided by a moral code, members of one population, the Trustors, are willing to punish members of the other population, the Trustees, who defect. Under replicator dynamics, adherence to the moral code has...

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...

In imperfectly discriminating contests with symmetric valuations, equilibrium payoffs are positive shares of the value of the prize. In contrast to a bargaining situation, players’ shares sum to less than one because a residual share of the value is lost due to rent dissipation. In this paper,...

We propose a simple model for why we have more trust in people who cooperate without calculating the associated costs. Intuitively, by not looking at the payoffs, people indicate that they will not be swayed by high temptations to defect, which makes them more attractive as interaction partners....

We present a model of boundedly rational play in single-shot 2 × 2 games. Players choose strategies based on the perceived salience of their own payoffs and, if own-payoff salience is uninformative, on the perceived salience of their opponent's payoffs. When own payoffs are salient, the model's...