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...

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...

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...

In this paper we consider a special class of n-person potential games and investigate partial cooperation between a portion of the players that sign a cooperative agreement. Existence results of partial cooperative equilibria are obtained and some possible applications are discussed,...

Strategic behaviors of players depend crucially on the coalition structures of a game. A recursive sequence identifying the number of embedded coalitions in a n-player game is derived. The paper also derives a recursive sequence identifying the number of embedded coalitions in a n-player game...

The paper presents a framework in which the most important single-valued solutions in the literature of TU games are jointly analyzed. None of the main results is original.

The impossibility of speculative trade result (Milgrom and Stokey, 1982) provokes the questions why traders care about their private information, if they cannot profit from it and how the aggregate information can then be reflected in REE prices. This paper answers these questions by analyzing a...

This paper develops a trade model for a technologically leading country and a developing country that exploits a renewable natural resource. Technology diffuses from the technological leader to the developing country through foreign direct investment (FDI). Alternatively, innovative activities...