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Alternating Offers in Economic Environments

Houba, Harold - 2005

The Nash bargaining solution of a modified bargaining problem in the contract space yields the pair of stationary subgame perfect equilibrium proposals in the alternating offers model, also for positive time between proposals. As time vanishes, convergence to the Nash bargaining solution is...

Persistent link: https://www.econbiz.de/10010325509

Extreme Equilibria in a General Negotiation Model

Houba, Harold; Wen, Quan - 2007

We study a bargaining model with a disagreement game between offers and counteroffers. In order to characterize the set of its subgame perfect equilibrium payoffs, we provide a recursive technique that relies on the Pareto frontier of equilibrium payoffs. When players have different time...

Persistent link: https://www.econbiz.de/10010325535

Consistency, Monotonicity and Implementation of Egalitarian Shapley Values

van den Brink, René; Funaki, Yukihiko; Ju, Yuan - 2007

One of the main issues in economics is the trade-off between marginalism and egalitarianism. In the context of cooperative games this trade-off can be framed as one of choosing to allocate according to the Shapley value or the equal division solution. In this paper we provide tools that make it...

Persistent link: https://www.econbiz.de/10010325573

Spline Smoothing over Difficult Regions

Koopman, Siem Jan; Wong, Soon Yip - 2008

We consider the problem of smoothing data on two-dimensional grids with holes or gaps. Such grids are often referred to as difficult regions. Since the data is not observed on these locations, the gap is not part of the domain. We cannot apply standard smoothing methods since they smooth over...

Persistent link: https://www.econbiz.de/10010325665

Terrorist Targeting, Information, and Secret Coalitions

Koster, Maurice; Lindner, Ines; McCormick, Gordon; … - 2010

We consider a game played by a state sponsor of terrorism, a terrorist group, and the target of terrorist attacks. The sponsoring state wishes to see as much damage inflicted on the target of attack as possible, but wishes to avoid retaliation. To do so, his relationship with the terrorist group...

Persistent link: https://www.econbiz.de/10010325672

A General Framework for Observation Driven Time-Varying Parameter Models

Creal, Drew; Koopman, Siem Jan; Lucas, André - 2008

We propose a new class of observation driven time series models referred to as Generalized Autoregressive Score (GAS) models. The driving mechanism of the GAS model is the scaled score of the likelihood function. This approach provides a unified and consistent framework for introducing...

Persistent link: https://www.econbiz.de/10010325732

Identification of Voters with Interest Groups improves the Electoral Chances of the Challenger

Sadiraj, Vjollca; Tuinstra, Jan; van Winden, Frans - 2009

Interest groups are introduced in a spatial model of electoral competition between two political parties. We show that, by coordinating voting behavior,these interest groups increase the winning set, which is defined as the set of policy platforms for the challenger that will defeat the...

Persistent link: https://www.econbiz.de/10010325751

Two-way Flow Networks with Small Decay

Jaegher, K. De; Kamphorst, J.J.A. - 2010

This paper characterizes the set of equilibrium networks in the two-way flow model of network formation with small decay, and this for all increasing benefit functions of the players. We show that as long as the population is large enough, this set contains large- as well as small-diameter...

Persistent link: https://www.econbiz.de/10010325763

From Overt to Tacit Collusion

Hinloopen, Jeroen; Soetevent, Adriaan - 2008

Recent laboratory experiments support the popular view that the introduction of corporate leniency programs has … significantly decreased cartel activity. The design of these repeated game experiments however is such that engaging in illegal … price discussions is the only way for subjects to avoid the one-shot competitive equilibrium. Subjects in the experiment of …

Persistent link: https://www.econbiz.de/10010325765

Contests with Rank-Order Spillovers

Baye, Michael R.; Kovenock, Dan; de Vries, Casper G. - 2009

This paper presents a unified framework for characterizing symmetric equilibrium in simultaneous move, two-player, rank-order contests with complete information, in which each player's strategy generates direct or indirect affine spillover effects that depend on the rank-order of her decision...

Persistent link: https://www.econbiz.de/10010325768