A situation is analysed in which two countries negotiate the financing of the incremental costs which accrue if one of them switches from a non-sustainable onto a sustainable development path. The other country's incentive to pay arises as it benefits from the developing country's environmental...

We analyze the performance of various communication protocols in a generalization of the Crawford-Sobel (1982) model of cheap talk that allows for multiple receivers. We find that whenever the sender can communicate informatively with both receivers by sending private messages, she can...

This paper proposes a model of multilateral contracting where players are engaged in two parallel interactions: they dynamically form coalitions and play a repeated normal form game with temporary and permanent decisions. This formulation encompasses many economic models with externalities and...

It is known that in two-sided many-to-many matching markets, pair-wise stability is not logically related with the (weak) core, unlike in many-to-one matching markets (Blair, 1988). In this paper, we seek a theoretical foundation for pairwise stability when group deviations are allowed. Group...

The bargaining model with stochastic order of proposing players is properly embedded in continuous time and it is strategically equivalent to the alternating offers model. For all parameter values, the pair of equilibrium proposals corresponds to the Nash bargaining solution of a modified...

The Nash bargaining solution of a modified bargaining problem in the contract space yields the pair of stationary subgame perfect equilibrium proposals in the alternating offers model, also for positive time between proposals. As time vanishes, convergence to the Nash bargaining solution is...

We study a bargaining model with a disagreement game between offers and counteroffers. In order to characterize the set of its subgame perfect equilibrium payoffs, we provide a recursive technique that relies on the Pareto frontier of equilibrium payoffs. When players have different time...

This paper studies the application of the notion of secure implementation (Cason, Saijo, Sjöström, and Yamato, 2006; Saijo, Sjöström, and Yamato, 2007) to the problem of allocating indivisible objects with monetary transfers. We propose a new domain-richness condition, termed as minimal...

This paper considers the object allocation problem introduced by Shapley and Scarf (1974). We study secure implementation (Saijo, Sjöström, and Yamato, 2007), that is, double implementation in dominant strategy and Nash equilibria. We prove that (i) an individually rational solution is...

This paper provides a co-operative as well as a non-cooperative analysis of weighted majority games. The co-operative solution concept introduced here, the Stable Demand Set, yields a meaningful selection within the Mas-Colell Bargaining Set, it contains the Core, it eliminates the "dominated"...