Showing 1 - 10 of 17,536
axiomatization of the Shapley value that the requirements of Core Compatibility, Equal Treatment Property and Strong Monotonicity are …
Persistent link: https://www.econbiz.de/10010381388
This paper prices the risk of climate change by calculating a lower bound for the price of a virtual insurance policy against climate risks associated with the business as usual (BAU) emissions path. In analogy with ordinary insurance pricing, this price depends on the current risk to which...
Persistent link: https://www.econbiz.de/10013091973
This paper defines a measure of bargaining uncertainty that quantifies Roth's concept of strategic risk. It shows how this measure can be used for checking reliability of the Shapley value in cost allocation problems and in the theory of competitive equilibrium. Salient properties of the new...
Persistent link: https://www.econbiz.de/10014087498
How are contracts formed when agents face uncertainty, have asymmetric information and cannot write binding agreements? In this paper we propose a solution to this problem. Agents can discuss state-contingent allocations but cannot write binding contracts. At any stage in the contract formation...
Persistent link: https://www.econbiz.de/10013008261
, hence agreements must be stable against both types of deviations. The appropriate extension of the classicakl core concept …, the Sustainable Core, is defined for this new setup to test the stability of allocations in such a complex environment. A … achieved by choosing an element in the Sustainable Core. …
Persistent link: https://www.econbiz.de/10010494526
, hence agreements must be stable against both types of deviations. The appropriate extension of the classical core concept …, the Sustainable Core, is defined for this new setup to test the stability of allocations in such a complex environment. A … achieved by choosing an element in the Sustainable Core. -- …
Persistent link: https://www.econbiz.de/10009656675
staying with the original outcome with the risk of deviating. Employing this idea to the core leads to a new concept that we … call the risk-based core. We introduce this concept and discuss its properties. We find an inclusion relation between cores … yields many of the familiar inclusion relations as corollaries, while the inclusion of the optimistic core in the optimistic …
Persistent link: https://www.econbiz.de/10012016409
We experimentally investigate a bargaining environment in which players negotiate over a fixed payment to one player, while the other player receives the residual from a random pie realization after subtracting the fixed payment. Contrary to the intuition that risk exposure is detrimental, we...
Persistent link: https://www.econbiz.de/10010438024
We study dynamic notions of fairness via an experiment of a two-round bilateral bargaining environment, where the payoff to one player is subject to ex-post risk, while the other player receives a fixed payment, effectively making the player exposed to risk a residual claimant. The ex-post risk...
Persistent link: https://www.econbiz.de/10012832341
Measuring risk can be axiomatized by the concept of coherent measures of risk. A risk environment specifies some individual portfolios' realization vectors and a coherent measure of risk. We consider sharing the risk of the aggregate portfolio by studying transferable utility cooperative games:...
Persistent link: https://www.econbiz.de/10010494358