Political economy analysis deals, basically, with modeling and interpreting the dynamics of a multi-agent economic/political sphere. This paper proposes a new technique for analysis of political economy in a game-theoretical framework based on multi-criteria decision making methods (MCDMs). To...

We analyze dynamic electoral competition policy changes. The costs of changing a policy increase with the extent of the shift and generate an incumbency advantage. We characterize the dynamics of Markov equilibria in terms of history and party polarization, and analyze how policies are...

We study the evolution of a social norm of `cooperation' in a dynamic environment. Each agent lives for two periods and interacts with agents from the previous and next generations via a coordination game. Social norms emerge as patterns of behavior that are stable in part due to agents'...

We examine the interplay between social norms and the enforcement of laws. Agents choose a behavior (e.g., tax evasion, production of low-quality products, corruption, harassing behavior, substance abuse, etc.) and then are randomly matched with another agent. There are complementarities in...

We examine the interplay between social norms and the enforcement of laws. Agents choose a behavior (e.g., tax evasion, production of low-quality products, corruption, harassing behavior, substance abuse, etc.) and then are randomly matched with another agent. There are complementarities in...

Competition between political parties is a process that unfolds over time whereas formal theories of party competition have tended to take an essentially static, or one-shot, approach. This leaves some gaps in our understanding of the dynamics of campaigning. The aim of this paper is to make up...

In this article we address the problem of finding feedback Nash equilibria for linear quadratic differential games defined on descriptor systems. First, we decouple the dynamic and algebraic parts of a descriptor system using canonical projectors. We discuss the effects of feedback on the...

In this note we reconsider Nash equilibria for the linear quadratic differential game for an infinite planning horizon. We consider an open-loop information structure. In the standard literature this problem is solved under the assumption that every player can stabilize the system on his own. In...

Given an arbitrary black-box strategy for the Iterated Prisoner's Dilemma game, it is often difficult to gauge to which extent it can be exploited by other strategies. In the presence of imperfect public monitoring and resulting observation errors, deriving a theoretical solution is even more...

In this note we present both necessary and sufficient conditions for the existence of a linear static state feedback controller if the system is described by an index one descriptor system. A priori no definiteness restrictions are made w.r.t. the quadratic performance criterium. It is shown...