The coalition formation problem in an economy with externalities can be adequately modeled by using games in partition function form (PFF games), proposed by Thrall and Lucas. If we suppose that forming the grand coalition generates the largest total surplus, a central question is how to...

We extend the contingent claims framework for the levered firm in explicitly modelling the resolution of financial distress under formal bankruptcy as a non-cooperative game between claimants under the supervision of the bankruptcy judge. The identity of the class of claimants proposing the...

This paper investigates an organizational design problem concerning whether duopolistic firms competing in a product market should vertically integrate or separate their marketing channels in a dynamic noncooperative game setting. Previous operational research models have shown that the...

In this paper, we consider a supply chain that consists of an original equipment manufacturer (OEM) producing new products and a remanufacturer recovering the used items. The OEM often faces a strategic dilemma when determining the degree of disassemblability of its product design, as high...

In an interactive model of offshore bidding, two firms located in two different countries bid on a project in a third country under exchange rate uncertainty. Every firm benefits and provides a higher bid when both firms have hedging opportunities. Even if only one bidder has the hedging...

This study presents a more general collusive mechanism that is sustainable in an oligopolistic repeated game. In this setup, firms can obtain average payoffs beyond the cooperative profits while at the same time improve consumer welfare through a lower market price offer. In particular, we...

Johan van Benthem has highlighted in his work that many questions arising in the analysis of strategic interaction call for logical and computational analysis. These questions lead to both formal and conceptually illuminating answers, in that they contribute to clarifying some of the underlying...

The purpose of this paper is to review the literature on coordination failures, apply game theory to coordination issues within selected rural development projects in order to develop a set of guidelines to avoid and minimize coordination failures. The ultimate aim is to promote development...

We present a model of social interaction in which actors choose their partners and play the Chicken Game with them. In contrast to most previous models of the coevolution of games and networks, we assume that the actors can employ different actions against different partners. This allows us to...

Purpose – This article aims to provide an exposition of evolutionary game theory which can be used for pedagogical purposes. Design/methodology/approach – The exposition is presented as a mathematical model in order to cover the formal underpinnings of evolutionary game theory. The paper...