A government bargains a mutually convenient agreement with a multinational corporation to extract a natural resource. The corporation bears the initial investment and earns as a return a share on the profits. The host country provides access and guarantee conditions of operation. Being the...

This paper establishes sufficient conditions for the existence of a stable coalition structure in the "coalition unanimity" game of coalition formation, first defined by Hart and Kurz (1983) and more recently studied by Yi (1997, 2000). Our conditions are defined on the strategic form game used...

We use Hotelling's spatial model of competition to investigate the position-taking behaviour of political candidates under a class of electoral systems known as scoring rules. In a scoring rule election, voters rank all the candidates running for office, following which the candidates are...

This paper introduces the notion of mixed leadership in non-zero-sum differential games, where there is no fixed hierarchy in decision making with respect to the players. Whether a particular player is leader or follower depends on the instrument variable s/he is controlling, and it is possible...

This paper examines a general model of sales contests in which agents have heterogeneous attitudes towards risk. It shows that agents that are less risk averse have a higher probability of success. A corollary to this result shows that when absolute risk aversion is decreasing in wealth,...

This paper presents a new cooperative equilibrium for strategic form games, denoted Conjectural Cooperative Equilibrium (CCE). This concept is based on the expectation that joint deviations from any strategy profile are followed by an optimal and noncooperative reaction of non deviators. We show...

A model of global oil production is applied to study cartelization by OPEC countries. Writing out the shadow price on quota allocations so as to draw correspondence to coefficients of cooperation (Cyert et al. 1973), we examine the incentives that different OPEC members to collude. We find that...

One aspect of the well-known Nash (1950, 1953) bargaining framework that appears to have remained largely neglected is the possibility that the parties to the bargain may have the incentive to misrepresent their true outside options if agreement fails to occur. Yet it is precisely in situations...

While experimental research on social dilemmas focuses on the distribution of gains, this paper analyzes social preferences in the case of losses. In this experimental study, participants share a loss in a Nash bargaining game. Instead of monetary losses, we use waiting time as an incentive. We...