Showing 1 - 7 of 7
In classic game theory, agents use mixed strategies in the form of objective and probabilistically precise devices to conceal their actions. We introduce the larger set of probabilistically imprecise devices as strategies and study the consequences for the basic results of normal form games....
Persistent link: https://www.econbiz.de/10010342129
This paper presents a class of finite n x n bimatrix (2-player) games we coin Circulant Games. In Circulant Games, each player's payoff matrix is a circulant matrix, i.e.\ each row vector is rotated one element relative to the preceding row vector. We show that when the payoffs in the first row...
Persistent link: https://www.econbiz.de/10010342139
We study the problem of assigning indivisible goods to individuals where each is to receive one object. To guarantee fairness in the absence of monetary compensation, we consider random assignments and analyse various equity criteria for such lotteries. In particular, we find that sd-no-envy (as...
Persistent link: https://www.econbiz.de/10010487727
We propose a theory of ex post inefficient renegotiation that is based on loss aversion. When two parties write a long …
Persistent link: https://www.econbiz.de/10010342285
renegotiation. If the buyer expects renegotiation always to take place, the parties are always able to implement the materially … efficient good ex post. It can be optimal for the buyer, however, to expect that renegotiation does not take place. In this case …
Persistent link: https://www.econbiz.de/10010486657
We propose a theory of inefficient renegotiation that is based on loss aversion. When two parties write a long …
Persistent link: https://www.econbiz.de/10010487344
-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant … and economically important impact on renegotiation behavior that goes beyond the effect of contracts on bargaining …
Persistent link: https://www.econbiz.de/10010342843