This chapter analyzes the possibility of manipulation in futures markets, concentrating on the effects that manipulation may have on their informational efficiency . We use the concept of manipulation as it arises in the study of noncooperative games with imperfect information . The problem can...

This paper shows that best-price guarantees can enhance welfare, in contrast to findings in recent literature. While a high-quality monopolist can signal its quality strictly through high prices, using both price and a best-price guarantee may allow the firm to signal its quality with a smaller...

We use game theory and the Santa Fe Artificial Stock Market, an agent-based model of an evolving stock market, to study the properties of strategic Nash equilibria in financial markets. We discover two things: there is a unique strategic equilibrium in the market, and this equilibrium in...

Multi-choice games and fuzzy games both deal with the situations where the players have more than two participants levels. Two values have been proposed for the multi-choice games: Hsiao-Raghavan (1993) and Nouweland et al. (1995). The former one depends on an arbitrarily given weight, and Hsia...

Social conventions and norms can be modeled as equilibria of coordination games. it is argued that the critical mass necessary for a society to move from one convention, that is from one equilibrium, to another changes correspondingly with changes in the population structure due to generation...

Consider a group of individuals who have to collectively choose an outcome from a finite set of feasible alternatives. A scoring or positional rule is an aggregation procedure where each voter awards a given number of points, Wj, to the alternative she ranks in Jth position in her preference...