Is civil and criminal litigation a search for truth, like science or philosophy, or a game of skill and luck, like the game of poker? Although the process of litigation has been modeled as a Prisoner’s Dilemma, as a War of Attrition, as a Game of Chicken, and even as a simple coin toss, no one...

We develop a simple model to study the coevolution of interaction structures and action choices in Prisoners' Dilemma games. Agents are boundedly rational and choose both actions and interaction partners via payoff-based imitation. The dynamics of imitation and exclusion yields polymorphic...

We develop a simple model to study the coevolution of interaction structures and action choices in Prisoners' Dilemma games. Agents are boundedly rational and choose both actions and interaction partners via payoff-based imitation. The dynamics of imitation and exclusion yields polymorphic...

We introduce a new solution concept for models of coalition formation, called the myopic stable set. The myopic stable set is defined for a very general class of social environments and allows for an infinite state space. We show that the myopic stable set exists and is non-empty. Under minor...

We consider non-cooperative environments in which two players have the power to commit but cannot sign binding agreements. We show that by committing to a set of actions rather than to a single action, players can implement a wide range of action profiles. We give a complete characterization of...

We propose a method to identify the ranking of focal points (Schelling, 1960) on the individual level. By contrast to conventional coordination, where subjects bet on only one alternative, subjects coordinate by the distribution of points. This allows them to invest in multiple alternatives and...

We propose a dynamic model of decentralized many-to-one matching in the context of a competitive labor market. Through wage offers and wage demands, firms compete over workers and workers compete over jobs. Firms make hire-and-fire decisions dependent on the wages of their own workers and on the...

Selfish, strategic players may benefit from cooperation, provided they reach agreement. It is therefore important to construct mechanisms that facilitate such cooperation, especially in the case of asymmetric private information. The two major issues are: (1) singling out a fair and efficient...

This paper associates a strategic n-person game with a given transferable utility game and studies its Nash equilibria. Strict equilibria in this model characterize those divisions of social surplus that can become conventions in the sense of Young (1993). It is shown that even in relatively...

We study the evolution of cooperation in spatial public goods games with four competing strategies: cooperators, defectors, punishing cooperators, and punishing defectors. To explore the robustness of the cooperation-promoting effect of costly punishment, besides the usual strategy adoption...