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Solves von Stackelberg equilibria in a Bertrand-Edgeworth duopoly game. Shows that, initially, the environment is characterized by efficient rationing and capacity constraints. Since interest lies in sustaining monopoly outcomes from non-co-operative behaviour, introduces the buyout option,...
Persistent link: https://www.econbiz.de/10005003262
Solves von Stackelberg equilibria in a Bertrand‐Edgeworth duopoly game. Shows that, initially, the environment is characterized by efficient rationing and capacity constraints. Since interest lies in sustaining monopoly outcomes from non‐co‐operative behaviour, introduces the buyout...
Persistent link: https://www.econbiz.de/10014863496
This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...
Persistent link: https://www.econbiz.de/10011398368
Everyone remembers a plot where a disadvantaged individual facing the prospect of failure, spends more effort, turns around the game and wins unexpectedly. Most tournament theories, however, predict the opposite pattern and see the disadvantaged agent investing less effort. We show that 'turn...
Persistent link: https://www.econbiz.de/10011430528
Competition is ubiquitous in economic life. Yet, negative consequences of competitive environments have been reported … subjectively perceived stress and the physiological changes induced by a well-established economic laboratory competition paradigm … active coping style were related to the self-selection into competition in the third round of the game. We speculate that …
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