Often, perfect bayesian equilibrium is loosely defined by stating that players should be sequentially rational given some beliefs in which Bayes rule is applied “whenever possible”. We show that there are games in which it is not clear what “whenever possible” means. Then, we provide a...

This paper deals with a methodology of computer modeling and simulation of market competitive situations using game theory. The situations are thematically focused mostly to models of commodity markets but the applications of the methodology can be wider. This methodology covers the whole...

Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.

In this paper we propose a new method to evaluate the distribution of power between decision-making bodies in the European Union. Conventional methods that measure the voting power of players, such as the Banzhaf, Johnston, Holler and Shapley-Shubik indices, are insufficient for this purpose....

This paper proposes an answer to the question: `What constitutes an adequate explanation to any generic institution?' I argue that if we adhere to a `rational choice' approach to the study of institutions, to explain an institution we must identify a set of actors, able to impose their will on...

Among the recent innovative strategies for coping with product variety and market risk some firms have partnered to leverage economies of scale and risk pooling by sharing manufacturing capacity. In this paper we study how to structure such a joint venture to achieve full efficiency at low...

Using a non-cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.

We investigate how moral concerns about permit trading affect an endogenous pollution permit trading equilibrium, where governments choose non-cooperatively the amount of permits they allocate to domestic industries. Politicians may feel reluctant to allow permit trading and/or may prefer that...

This paper aims to analyze the issue of price spikes in electricity markets through the lens of noncooperative game theory. The case we consider is Australia’s long established National Electricity Market (NEM). Specifically, we adapt von der Fehr and Harbord’s multi-unit auction model to...

This paper studies the concept of "mutual aid" developed by Kropotkin, which implies cooperation as a strategic choice. We study this concept in a Sequential Prisoners' Dilemma in a non-cooperative framework and in an indirect evolution framework (with complete and incomplete information). We...