Determining the productivity of individual workers engaged in team production is difficult. Monitoring expenses may be high, or the observable output of the entire team may be some single product. One way to collect information about individual productivity is to observe how total output changes...

This paper analyses whether the effect of compensation of former spouses after divorce has an impact on the probability of divorces occurring. In particular, it is assumed that the income difference after divorce is shared equally between former spouses, in line with rules in Germany. The...

We consider a game-theoretic model of counterproliferation, in which a single Incumbent (holding nuclear weapons) is faced with a sequence of potential Entrants (who are considering developing and deploying a nuclear capability or other weapons of mass destruction of their own). The Incumbent...

We introduce a new zero-sum matrix game for modeling search in structured domains. In this game, one player tries to find a "bug" while the other tries to hide it. Both players exploit the structure of the "search" domain. Intuitively, this search game is a mathematical generalization of the...

The general approach for the pricing of rainbow (or colored) options with fixed transaction costs is developed from the game theoretic point of view. The evolution of the underlying common stocks is considered in discrete time. The main result consists in the explicit calculation of the hedge...

Recently it is proved that all infinite assignment games have a non-empty core. Using this fact, and a technique suggested by L. S. Shapley for finite permutation games, we prove similar results for infinite permutation games. Infinite transportation games can be interpreted as a generalization...

This paper defines a measure of bargaining uncertainty that quantifies Roth's concept of strategic risk. It shows how this measure can be used for checking reliability of the Shapley value in cost allocation problems and in the theory of competitive equilibrium. Salient properties of the new...

Prisoner's dilemma played by finite automata is reviewed again using a slightly modified measure of complexity. At a first step, an equilibrium with a large number of possible outcomes is shown to hold. At a second stage, we consider a game of repeated interaction, and show that on (limit)...

Consider G = (X1,…,XM,g1,…,gM) an M-player game in strategic form, where the set Xi is an interval of real numbers and the payoff functions gi are differentiable with respect to the related variable xi ∈ Xi. If they are also concave, with respect to the related variable, then it is...

We decompose the representative agent into her manager, worker and rentier selves. The criterion is the information set of each of the 'incarnations' at every stage of a repeated game. The rentier's information set includes anticipating information while the information set of the other agents...