We present an experimental study of a risky sequential bargaining to model negotiations in risky joint ventures that proceed through multiple stages.Our example is the production of a movie that may give rise to a sequel, so actors and producers negitiate sequentially.We compare the predictions...

The aim of the present study is to construct a state feedback controller for a given linear system that minimizes the worst-case effect of an L2 -bounded disturbance. Our setting is different from the usual framework of H -theory in that we consider nonzero initial conditions. The situation is...

Most of the known efficient algorithms designed to compute the nucleolus for special classes of balanced games are based on two facts: (i) in any balanced game, the coalitions which actually determine the nucleolus are essential; and (ii) all essential coalitions in any of the games in the class...

In an experimental study we examine a variant of the 'minimum effort game', a coordination game with Pareto ranked equilibria, and risk considerations pointing to the least efficient equilibrium.We focus on the question whether simple cues such as smiles, winks and handshakes could be recognized...

This paper considers the problem of investment timing under uncertainty in a duopoly framework.When both firms want to be the first investor a coordination problem arises.Here, a method is proposed to deal with this coordination problem, involving the use of symmetric mixed strategies.The method...

This paper extends the classic two-armed bandit problem to a many-agent setting in which I players each face the same experi- mentation problem.The main change from the single-agent prob- lem is that an agent can now learn from the current experimentation of other agents.Information is therefore...

We investigate the equilibria of game theoretic models of network formation that are based on individual actions only.Our approach is grounded in three simple and realistic principles: (1) Link formation should be a binary process of consent.(2) Link formation should be costly.(3) The class of...