How should we evaluate the welfare implications of improvements to safety technologies in the presence of offsetting behavior? We model this problem as a symmetric game in which each player's payoff depends on his own action and the average action of the other players, and analyze under which...

How should we evaluate the welfare implications of improvements to safety technologies in the presence of offsetting behavior? We model this problem as a symmetric game in which each player's payoff depends on his own action and the average action of the other players, and analyze under which...

We examine the formation of multilateral, hub-and-spoke and bilateral international R&D strategic alliances (overlapping climate clubs) to reduce CO2 emissions. R&D provision in clubs produces two types of positive externalities: a global public good (i.e., reduction of CO2 emissions) and...

How can we maximize the common good? This is a central organizing question of public policy design, across political parties and ideologies. The answer typically involves the provisioning of public goods such as fresh air, national defense, and knowledge. Public goods are costly to produce but...

We adapt the method used by Jaynes to derive the equilibria of statistical physics to instead derive equilibria of bounded rational game theory. We analyze the dependence of these equilibria on the parameters of the underlying game, focusing on hysteresis effects. In particular, we show that by...

We investigate the computational complexity of several decision problems in hedonic coalition formation games and demonstrate that attaining stability in such games remains NP-hard even when they are additive. Precisely, we prove that when either core stability or strict core stability is under...

The Shapley-Shubik index is a specialization of the Shapley value and is widely applied to evaluate the power distribution in committees drawing binary decisions. It was generalized to decisions with more than two levels of approval both in the input and the output. The corresponding games are...

We consider collective decision problems where some agents have private information about alternatives and others don't. Voting takes place under strategy-proof rules. Prior to voting, informed agents may or may not disclose their private information, thus eventually influencing the preferences...

Previous experiments have found mixed results on whether honesty is intuitive or requires deliberation. Here we add to this literature by building on prior work of Capraro (2017). We report a large study (N=1,389) manipulating time pressure vs time delay in a deception game. We find that, in...

Reputation plays a major role in human societies, and it has been proposed as an explanation for the evolution of cooperation. While the majority of previous studies equates reputation with a transparent and complete history of players' past decisions, in real life, reputations are often...