We analyze a market game where traders are heterogeneous with respect to their rationality level and have asymmetric information. The market mechanism results into a statistical equilibrium, where traders randomise among their available actions due to their limited rationality. We provide a...

Standard models of observational learning in settings of sequential choice have two key features. The first is that players make decisions by using Bayes' rule to update their beliefs about payoffs from a common prior. The second is that each agent's decision rule is common knowledge, so that...

We introduce negative externalities in the form of ill will among the players of the classic two-sided assignment game of Shapley and Shubik, by letting each player's utility be negatively correlated with the payoff of all the players in his group. The new game is very complex, but under a...

The interaction between a sophisticated player and a fictitious player is analyzed and applied to the problem of optimal enforcement. An adaptive potential offender myopically responds to the history of past enforcement. How can a sophisticated enforcement official take advantage of this...

Invariant selection of the risk-dominant equilibrium of evolutionary coordination games with "skew-symmetric" noise processes is extended to the case of simultaneous strategy revisions.

Solution uniqueness is an important property for a bargaining model. Rubinstein's (1982) seminal 2-person alternating-offer bargaining game has a unique Subgame Perfect Equilibrium outcome. Is it possible to obtain uniqueness results in the much enlarged setting of multilateral bargaining with a...

This paper presents two new results on the enumeration of all extreme equilibria of the sequence form of a two person extensive game. The sequence form of an extensive game is expressed, for the first time to our knowledge, as a parametric linear 0 - 1 program. Considering Ext(P) as the set of...

We consider a market situation with two corners. One corner consists of a single seller with one object, and the other corner consists of potential buyers who all want the object. We suppose that the valuations of the object for the different buyers are known by all of them. Then two types of...

Two players are endowed with resources for setting up N locations on K identical circles, with N K ≥ 1. The players alternately choose these locations (possibly in batches of more than one in each round) in order to secure the area closer to their locations than that of their rival's. They...

The PERT (Program Evaluation Review Technique) is a operational research tool used to schedule and coordinate activities in a complex project. We present two values for measuring the importance of each activity. Both values are obtained through an axiomatic characterization using three...