A new approach is presented. It is based on a generalization of a breach of a term of contract and on the economic uncertainty principle. Problems, which can be solved, research fields, which can be augmented or created, and fields of applications in practical economy are reviewed. The role of...

We examine whether greater inter-state trade, democracy and reduced military spending lower belligerence between India and Pakistan. We begin with theoretical models covering the opportunity costs of conflict in terms of trade losses and security spending, as well as the costs of making...

By introducing the government's preference for tax revenues into an extended game with observable delay, this study provides new insight into the trade-off between the government and the public firm's payoff in a government's optimal policy of privatization. The results show that: (i) regardless...

This paper proposes a multi-winner noisy-ranking contest model. Contestants are ranked in a descending order by their perceived outputs, and rewarded by their ranks. A contestant's perceivable output increases with his/her autonomous effort, but is subject to random perturbation. We establish,...

This paper considers the problem of a decision maker who is faced with a dynamic decision problem with several alternatives, and additionally can engage in prior consultation on one of the alternatives. Information received from others is coarse. When consulting on an alternative that the...

We propose two variations of the non-cooperative bargaining model for games in coalitional form, introduced by Hart and Mas-Colell (1996a). These strategic games implement, in the limit, two new NTU-values: The random marginal and the random removal values. The main characteristic of these...

The War on Iraq in has split the continent into ‘Old Europe’ and ‘New Europe’. On Iran, by contrast, the EU jointly acts in the context of a coordinated European foreign policy. The paper argues that both conflicts resemble an assurance game among the Europeans, in which the entailed...

The Article presents a brief survey of economic history, by emphasizing the earlier history of neo-classical economic theory and the economic theory of marginal utility. The Articles does so for exploring the relation of game theory or the strategic game to developments in the field or science...

In an interactive model of offshore bidding, two firms located in two different countries bid on a project in a third country under exchange rate uncertainty. Every firm benefits and provides a higher bid when both firms have hedging opportunities. Even if only one bidder has the hedging...

In this paper, we develop a theoretical model of household production, bargaining and credit to analyse how access to microcredit affects intra-household decision-making and welfare, and identify conditions under which female household members are most likely to benefit. We show that, consistent...