In this paper, we suggest a simple sequential mechanism whose subgame perfect equilibria give rise to efficient networks. Moreover, the payoffs received by the agents coincide with their Shapley value in an appropriately defined cooperative game.

This paper uses the complexity of non-competitive behaviour to provide a new justification for competitive equilibrium in the context of extensive-form market games with a finite number of agents. This paper demonstrates that if rational agents have (at least at the margin) an aversion for...

Herbert Simon disseminated his bounded rationality approach in his vast academic production. The recognition of the complex environment and the cognitive limits led him to study about the use of heuristics in the decision-making. Around this idea, a new path to the study of human decisions has...