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Global games methods are aimed at resolving issues of multiplicity of equilibria and coordination failure that arise in game theoretic models by relaxing common knowledge assumptions about an underlying parameter. These methods have recently received a lot of attention when the underlying...
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Two recent research programs—one on the sources of democratic consolidation and another on the causes and consequences of violent conflict—have tended to evolve in relative isolation. The contributions to this special issue of Journal of Conflict Resolution help to bridge this gap,...
Persistent link: https://www.econbiz.de/10009294400
We model a game between two players taking biosecurity actions and characterize the Nash equilibria and their properties for the cases of strategic complements and substitutes. Implications of the theoretical model are investigated using data for biosecurity behavior among producers...
Persistent link: https://www.econbiz.de/10009365807
The allocation of order flow to alternative trading systems can be understood as a game with strategic substitutes between buyers on the same side of the market, as well as one of positive network externalities. We consider the allocation of order flow between a crossing network and a dealer...
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We investigate the strategic nature of farmers' groundwater usage with a rich dataset from the American Midwest. We propose a new revealed preference test for the groundwater interaction as a dynamic game. We reject a view of groundwater usage decisions as strategic substitutes in favor of...
Persistent link: https://www.econbiz.de/10014418073
The evidence from many experiments suggests that people are heterogeneous with regard to their abilities to make rational, forward looking, decisions. This raises the question when the rational types are decisive for aggregate outcomes and when the boundedly rational types shape aggregate...
Persistent link: https://www.econbiz.de/10005797664
The order and lattice structure of the equilibrium set in games with strategic complements do not survive a minimal introduction of strategic substitutes: in a lattice game in which all-but-one players exhibit strategic complements (with one player exhibiting strict strategic complements), and...
Persistent link: https://www.econbiz.de/10008509094