A buyout option enhances an auction by allowing a bidder to purchase the item at a pre-specified price (instead of attempting to obtain the item by way of auction). A comparison is made between the ex ante welfare of bidders in an auction with a buyout option to a traditional auction with no...

We introduce a modified version of the Ultimatum game where people bargain over losses instead of gains. Results show that when people bargain over losses, they make more aggressive offers, in terms of their own monetary well-being, as compared to when they bargained over gains.

A review of the literature on cost sharing solutions for the minimum cost spanning tree problem is proposed, with a particular focus on the folk and Kar solutions. We compare the characterizations proposed, helped by some equivalencies between sets of properties.

No abstract received.

No abstract received.

Restricting the analysis to general 2×2 coordination games, this article shows how under certain conditions, it is highly likely that individuals coordinate on a (pay-off) efficient through risk inferior convention. This contrasts with other equilibrium refinement criteria, such as risk...

The topic is two-fold. First, we prove the convexity of Owen's Airport Profit Game (inclusive of revenues and costs). As an adjunct, we characterize the class of 1-convex Airport Profit Games by equivalent properties of the corresponding cost function. Second, we classify the class of 1-convex...

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...

No abstract received.

From a special class of TU games with information cost, given by the problem of sharing the costs of facilities among users, we build a noncooperative game in which every player asks for the assessment of whom the users are. We analyze two models, "naming" game and majority decision game: the...