This paper analyzes strategic interactions and contagion effects in the peripheral countries of a monetary union. Using game theory and cost-benefit analysis, the paper determines the set of equilibrium solutions under which country-specific shocks are transmitted to other member countries...

Cost spanning tree problems concern the construction of a tree which provides a connection with the source for every node of the network. In this paper, we address cost sharing problems associated to these situations when the agents located at the nodes act in a non-cooperative way. A class of...

In this paper, we consider constrained noncooperative N-person stochastic games with discounted cost criteria. The state space is assumed to be countable and the action sets are compact metric spaces. We present three main results. The first concerns the sensitivity or approximation of...

This note contains a detailed derivation of the equations of the recent mean field games theory (abbr. MFG), developed by M. Huang, P.E. Caines, and R.P. Malhamé on one hand and by J.-M. Lasry and P.-L. Lions on the other, associated with a class of stochastic differential games, where the...

In this paper we analyse the equilibrium structure for a particular type of electricity market. We consider a market with two generators offering electricity into a pool. Generators are centrally dispatched, with cheapest offers used first. The pool price is determined as the highest-priced...

Frequently controls forming Nash equilibria in differential games are not Pareto optimal. This paper presents conditions that can be used to show the existence of strict Pareto improvements of Nash equilibria in such games. The conditions are based on standard tools in control theory. Copyright...

This paper provides a simple formula describing all Nash equilibria in monotone symmetric singleton congestion games. Our approach also yields a new and short proof establishing the existence of a Nash equilibrium in this kind of congestion games.

In the paper, we re-investigate the long run behavior of an adaptive learning process driven by the stochastic replicator dynamics developed by Fudenberg and Harris (1992). It is demonstrated that the Nash equilibrium will be the robust limit of the adaptive learning process as long as it is...

In this paper, we study the number of pure strategy Nash equilibria in a "random" n-person non-cooperative game in which all players have a countable number of strategies. We provide explicit expressions for the expected number of pure strategy Nash Equilibria, and show that the distribution of...