Bloch (1996) presents a novel method to solve cooperative games with externalities. When trying to relate this to classical approaches he could only present negative results. We elaborate on these problems, define a modification of Bloch''s model and show that its order-independent equilibria...

By distinguishing between discretionary and non-discretionary fiscal policy, this paper analyses the stability of fiscal rules for EMU countries before and after the Maastricht Treaty. Using both Instrumental Variables and GMM techniques, it turns out that discretionary fiscal policy has...

This paper investigates the state, development and drivers of banking market integration in the member countries of the Southern African Development Community (SADC) by employing interest rate data. We first conduct a principal component analysis and find evidence for both increasing monetary...

We examine product-games, which are n-player stochastic games satisfying: (1) the state space is a product S(1)×…×S(n); (2) the action space of any player i only depends of the i-th coordinate of the state; (3) the transition probability of moving from s(i) ∈ S(i) to t(i) ∈S(i), on the...

This paper deals with the optimization of the flow of sterile instruments in hospital which takes place between the sterilization department and the operating theatre. This topic is especially of interest in view of the current attempts of hospitals to cut costs by outsourcing sterilization...

We investigate the determinants of European banking market integration with a focus on the potentially limiting role of cultural and political factors. Employing a unique data set of European cross-border loans and deposits, the study uses various gravity models that are augmented by societal...

Network formation constitutes an important part of many social and economic processes, but relatively little is known about how individuals make their linking decisions. This article provides an experimental investigation of behavioral effects in individual decisions of network formation. Our...

While they use the language of game theory known measures of a priory voting power are hardly more than statistical expectations assuming the random behaviour of the players. Focusing on normalised indices we show that rational players would behave differently from the indices predictions and...

This paper briefly analyses the shifts in economic theory that have moved policy makers from unambiguously pursuing full employment, to the current state where full employability is justified as being optimal. We also explore how these theoretical developments translated in practice, culminating...

We introduce a new method of varying the risk that bidders face in first-price private value auctions. We find that decreasing bidders’ risk significantly reduces the degree of overbidding relative to the risk-neutral Bayesian-Nash equilibrium prediction. This implies that risk affects bidding...