It is found that the “Theory of Moves” is adequate in a Cold War scenario, with functionally equal participants, such as the Cuban Missile Crisis. The destabilization of normal incentive systems, under power and information asymmetry, is what prevents an equilibrium from being reached, as...

We present a medium-term market equilibrium model of the North American crude oil sector via which we develop a scenario analysis to investigate strategies to mitigate the environmental and public-safety risks from crude-by-rail transportation across the United States. The model captures crude...

In this paper we present two general results on the existence of a discrete zero point of a function from the n-dimensional integer lattice Zn to the n-dimensional Euclidean space Rn. Under two different boundary conditions, we give a constructive proof using a combinatorial argument based on a...

We consider a Bayesian persuasion problem where the persuader and the decision maker communicate through an imperfect channel that has a fixed and limited number of messages and is subject to exogenous noise. We provide an upper bound on the payoffs the persuader can secure by communicating...

It has been argued that in the absence of altruism, intergenerational transfers can survive only if the old are net recipients. I prove that this need not hold in an over-lapping generations model with a fixed factor. For example, the middle-aged owning land may gain by providing public...

The aim of this study is to find out why people are telling the truth: is it a desire to respect trust, to avoid losses for others, or a mere distaste for lying per se? To answer this question we study a sender-receiver game where it is possible to delegate the act of lying and where it is...

We perform a (psychological) game-theoretic analysis of cheating in the setting proposed by Fischbacher & Föllmi-Heusi (2013). The key assumption, which we refer to as perceived cheating aversion, is that the decision maker derives disutility in proportion to the amount in which he is perceived...

Since the seminal paper of Nash (1950) game theoretic literature has focused mostly on equilibrium and not on maximin (minimax) strategies. We study the properties of these strategies in 2-player non-zero-sum strategic games, whose Nash equilibria are only mixed.

We study collective choice via an endogenous agenda setting process. At each stage, a status quo is implemented unless it is replaced by a majority (winning coalition) with a new status quo outcome. The process continues until the prevailing status quo is no longer challenged. We impose a...