This paper addresses coalition government formation. We formulate a model that dresses why and when coalition governments from that include more than the minimum number of parties required for the majority.

A hostage with respect to an action of a player is defined here to be an amount ofpayoff that will be placed in the opponent's possession if the player takes the action. Whereas the only Nash equilibrium for a prisoner's dilemma game is mutual defection, it is shown that there are at most two...

The purpose of this paper is twofold. First, it introduces a new version of the Edgeworth process with trading activities centered around self-interested enterprising arbitragers; and second it examines how the prices of the derived securities are deteremined under this process.