A person learns by trial and error if he occasionally tries out new strategies, rejecting choices that are “erroneous” in the sense that they do not lead to higher payoffs. In a game, however, strategies can become erroneous due to a change of behavior by someone else. Such passive errors...

This paper shows that generators exercised increasing market power in the England and Wales wholesale electricity market in the second half of the 1990s despite declining market concentration. It examines whether this was consistent with static, non-cooperative oligopoly models, which are widely...

Comparative advantage motivates large trade flows in feeder animals throughout the world. Trade creates externalities when animal diseases can spread beyond the purchasing farm. When growers can choose between open and closed production systems, Nash equilibrium will likely involve socially...

"This theme paper focuses on political institutions and their effects on social choice. Institutions are argued to play a mediating rolebetween the preferences of individuals and social choices. In addition to playing an endogenous role in molding and channeling preferences, institutions...

This article investigates whether there are strategic interactions between private traveler information service providers (ISPs) and private toll road operators (TOs), whose objectives are profit-driven. For this purpose, a multiclass stochastic user equilibrium assignment model capturing the...

With the rapid development of wireless Internet services, several WLAN service providers may coexist in one public hotspot to compete for the same group of customers, leading to an inevitable price competition. The charged price and the provisioned packet loss at each provider are major factors...

Nash equilibrium is usually used as the solution of generator's strategic bidding in electricity markets. The available literature has shown by simulation that multiple market equilibria or no pure equilibrium may be induced after the inclusion of network constraints (transmission constraints)....

Reverse production systems are often comprised of several tiers with independent members competing at each tier. This research develops and designs a decision-making process for decentralized reverse production systems where each participant in the network determines its decisions in a...

As the world's largest carbon resources country with relatively great carbon emission, China in has just started its carbon trade. China is only a passive participant in international carbon trading market, rarely participating in the project of Clean Development Mechanism (CDM). Therefore,...

We discuss the strategic behavior of agents on a financial market in the presence of a central bank which is borrowing and lending money.