In this paper we provide a cooperative solution as well as a non-cooperative analysis to study coalition formation and payoff distribution in weighted majority games. The cooperative solu- tion concept proposed here, the Anonymous Core, keeps the spirit of Core-like competition (reflecting...

Some international organizations are governed by unanimity rule, others by (simple or qualified) majority rules. Standard voting models, which assume that the decisions made by voting are perfectly enforceable, have a hard time explaining the observed variation in governance mode, and in...

We present a simple theory of the quality (competence and honesty) of elected officials. Our theory offers four main insights. Low-quality citizens have a 'comparative advantage' in pursuing elective office, because their market wages are lower than those of high-quality citizens (competence),...

This paper introduces a non-cooperative game-theoretic model of sequential network formation, in which players propose links and demand payoffs. Payoff division is therefore endogenous. We show that if the value of networks satisfies size monotonicity, then each and every equilibrium network is...

We study countries choosing armament levels and then whether or not to go to war. We show that if the costs of war are not overly high or low, then all equilibria must involve "dove," "hawk," and "deterrent" strategies and the probability of war is positive (but less than one) in any given...

This paper introduces a non-cooperative game-theoretic model of sequential network formation, in which players propose links and demand payoffs. Payoff division is therefore endogenous. We show that if the value of networks satisfies size-monotonicity, then each and every equilibrium network is...

We study an economy where agents are heterogeneous in terms of observable wealth and unobservable talent. Adverse selection forces creditors to ask for collateral. We study the two-way interaction between rationing in the credit market and the wages offered in the labour market. Both pooling and...