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about job openings, bargaining power etc. Given these beneficial aspects of networks, the stability is in question: How do … networks.Finally, one of the focal topics of strategic network formation is the "tension of stability and efficiency" (see …
Persistent link: https://www.econbiz.de/10009452644
design approach that allows dealing with the multiple equilibrium problem, using mechanisms that are robust to bounded … rationality. This approach is a tool for constructing supermodular mechanisms, i.e. mechanisms that induce games with strategic … supermodular mechanism whose equilibria are contained in the smallest interval among all supermodular mechanisms. This is followed …
Persistent link: https://www.econbiz.de/10009455293
Since the seminal contribution of Jackson & Wolinsky 1996 [A Strategic Model of Social and Economic Networks, JET 71, 44-74] it has been widely acknowledged that the formation of social networks exhibits a general conflict between individual strategic behavior and collective outcome. What has...
Persistent link: https://www.econbiz.de/10009452539
This paper studies the properties of convexity (concavity) and strategic complements (substitutes) in network formation and the implications for the structure of pairwise stable networks. First, different definitions of convexity (concavity) in own links from the literature are put into the...
Persistent link: https://www.econbiz.de/10009452561
"In 1968, Hardin argued that all commonly-owned resources would tragically be depleted unless private ownership was granted. There are many case studies which prove Hardin wrong. Common-pool resources have been managed with success. However, this success does not imply (as some believe) that...
Persistent link: https://www.econbiz.de/10009468460
preferences exhibit substitutability, simpler demand-reduction strategies address the own price effect problem more directly and …
Persistent link: https://www.econbiz.de/10009476549
of these mechanisms to maximize her own profits is a central issue in the organization of markets. The seminal paper of … mechanisms. In this model, it is assumed that the buyers have perfect information as to the existence of gains from trade. We … the first essay we provide an original technique for comparing ex ante expected profits across mechanisms for a seller …
Persistent link: https://www.econbiz.de/10009480046
mechanisms in the upstream market determine the behaviors of markets in the downstream market and how pricing policy in the … downstream market influences the properties of allocation mechanisms. We classify an effective range of capacity that influences …
Persistent link: https://www.econbiz.de/10009482102
Mechanism design uses game theory to analyze how to construct mechanisms that give agents incentives to produce an … on robust mechanism design has focused on finding "dominant strategy mechanisms," where agents' equilibrium actions … depend only on their preferences and not their beliefs about the other agents. Focusing on such mechanisms makes uncertainty …
Persistent link: https://www.econbiz.de/10009482948
paper argues that the conflict of interest between insiders and authorisation mechanisms is analogous to the subset of …
Persistent link: https://www.econbiz.de/10009483459