In this paper I study conditions for the emergence of cooperativebehavior in a dynamic model of population interaction.The model has finitely many individuals located on a circle. The pay-off of each individual is partly based on the (local)interaction with neighbors and partly on (uniform)...

Different variations of a Principle of Coordination are used in anumber ofdifferent research traditions. Roughly speaking, one version of thePrinciple says thatif there is a unique Pareto-efficient outcome in a game, then playerswill choose theirpart of that outcome. In this paper I will...

This paper develops an economic argument relating auctions to high marketprices. At the core of the argument is the claim that market competition andbidding in an auction should be analyzed as part of one game, where the pricingstrategies in the market subgame depend on the bidding strategies...

This paper gives an overview of the literature on focal points. It starts with reviewing Schelling’s seminalbook The Strategy of Conflict.I then discuss the problems that have to be faced when incorporating thenotion of focal points in theory of games. Two recent approaches are discussed that...