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This paper studies models where the optimal response functions under consideration are non-increasing in endogenous variables, and weakly increasing in exogenous parameters. Such models include games with strategic substitutes, and include cases where additionally, some variables may be...
Persistent link: https://www.econbiz.de/10012824357
Implementing a project, like a nationwide nuclear waste disposal, which benefits all involved agents but brings major costs only to the host is often problematic. In practice, revelation issues and redistributional concerns are significant obstacles to achieving stable agreements. We address...
Persistent link: https://www.econbiz.de/10004961502
I suggest a new game called wise exploitation. It is characterized by a small investment of the exploiting party to either breed the exploited party or educate the exploited party not to detect exploitation. Thereby a higher productivity than cooperation or prisoners´ dilemma is achieved. The...
Persistent link: https://www.econbiz.de/10008595615
courses and courses have implicit preferences for students. This formulates a many-to-many matching problem. We show the … inefficiencies of the current mechanism and propose new competing mechanisms called Pareto-improving draft and dictatorship … mechanisms, which introduce ties into students' preferences. Our mechanisms generate (group) stable and Pareto …
Persistent link: https://www.econbiz.de/10011107943
A new mechanism that substantially mitigates social dilemmas is examined theoretically and experimentally. It resembles the voluntary contribution mechanism (VCM) except that in each decision round subjects are ranked and then grouped according to their public contribution. The game has multiple...
Persistent link: https://www.econbiz.de/10005621227
optimal for the seller to do away with any matching considerations and allocate the contract on the basis of price alone. If … matching is sufficiently important to the seller, the optimal mechanism may be implemented without commitment. However, if … matching is not sufficiently important, the seller suffers a loss when he is unable to commit. The magnitude of this loss …
Persistent link: https://www.econbiz.de/10008490104
) implementation with partially honest agents when there are three or more participants. First, it establishes a condition which is … necessary and sufficient for implementation. Second, it provides simple tests for checking whether or not a social choice … correspondence can be implemented. Their usefulness is shown by examining implementation in a wide variety of environments. …
Persistent link: https://www.econbiz.de/10011258792
In this paper, we use experimental data to study players' stability in normal-form games where subjects have to report … without feedback. We document a high degree of stability within the same (strategically equivalent) game, although time and … changes in the presentation of the game do lead to less stability. To look at stability across different games, we adopt the …
Persistent link: https://www.econbiz.de/10011107567
The paper presents three different reconstructions of the 1980s boom of game theory and its rise to the present status of indispensable tool-box for modern economics. The first story focuses on the Nash refinements literature and on the development of Bayesian games. The second emphasizes the...
Persistent link: https://www.econbiz.de/10009323925
The aim of this paper is to introduce prospect theory in a game theoretic framework. We address the complexity of the weighting function by restricting the object of our analysis to a 2-player 2-strategy game, in order to derive some core results. We find that dominant and indifferent strategies...
Persistent link: https://www.econbiz.de/10011110809