We propose a model to describe and study the effect of social interdependent preferences in a Cournot oligopoly based on a game in which the utility functions of firms depend on a combination of weighted profits of their competitors. If social interaction is neglected, the model reduces to the...

We study a coordination game on a fixed connected network where players have to choose between two projects. Some players are moderate (i.e. they are ex-ante indifferent between both project) while others are stubborn (i.e. they always choose the same project). Benefits for moderate players are...

Tipping of a natural system, entailing a loss of ecosystem services, may be prevented by stable partial cooperation. The presence of tipping points reverses the grim story that a high level of cooperation is hard to achieve and leaves large possible gains of cooperation. We investigate a tipping...

We study the optimal management of evolving hierarchies, which abound in real-life phenomena. An initiator invests into finding a subordinate, who will bring revenues to the joint venture and who will invest herself into finding another subordinate, and so on. The higher the individual...

This volume contains eight papers written by Adam Brandenburger and his co-authors over a period of 25 years. These papers are part of a program to reconstruct game theory in order to make how players reason about a game a central feature of the theory. The program — now called epistemic game...

Powers of recursion are often adduced for ‘recombinant innovation'. The onset of the digital economy, based on operations on discretely encoded information, has renewed interest in this. Digital computing has a provenance with the John von Neumann dynamical systems theory based on complex...

Inductive game theory captures how a player inductively derives his/her personal views from experiences. The player may have multiple views, some of which differ from the objective situation, but may revise them with further experiences. This paper gives a logical formulation of this revision...

The Nash Bargaining Solution is characterised by using the new axiom of Maximal Symmetry in place of Nash's Independence of Irrelevant Alternatives and Symmetry. This axiom expresses the idea that a fair arbitrator should treat symmetric alternatives in the same way, subject to the feasibility...

This paper describes the results of an experiment applying the strategy method to analyze the behavior of subjects in an 8-player common pool resource (CPR) game. The CPR game consists of a constituent game played for 20 periods. The CPR game has a unique optimum and a unique subgame perfect...