We analyse potential sources of internal imbalances, specifically as regards private and public indebtedness. The combination of a high public debt and increasing private sector indebtedness have been a source of concern in the perspective of the funding of the economy in examined countries. We...

The paper introduces some simplifying tools and methods for studying Rational Beliefs and for proving existence of Rational Belief Equilibria. We identify a set of stable non-stationary stochastic processes, named SIDS processes. Furthermore we introduce the concept of a Rational Belief...

This paper explores instances of coordination failures in intertemporal decisions. The context is one where agents try to interpret the behavior of others as it is revealed by market variables. The paper shows examples where, if agents postulate that market data necessarily result from actions...

A review of the literature on cost sharing solutions for the minimum cost spanning tree problem is proposed, with a particular focus on the folk and Kar solutions. We compare the characterizations proposed, helped by some equivalencies between sets of properties.

No abstract received.

No abstract received.

Restricting the analysis to general 2×2 coordination games, this article shows how under certain conditions, it is highly likely that individuals coordinate on a (pay-off) efficient through risk inferior convention. This contrasts with other equilibrium refinement criteria, such as risk...

The topic is two-fold. First, we prove the convexity of Owen's Airport Profit Game (inclusive of revenues and costs). As an adjunct, we characterize the class of 1-convex Airport Profit Games by equivalent properties of the corresponding cost function. Second, we classify the class of 1-convex...

The interaction between a sophisticated player and a fictitious player is analyzed and applied to the problem of optimal enforcement. An adaptive potential offender myopically responds to the history of past enforcement. How can a sophisticated enforcement official take advantage of this...

No abstract received.