We investigate the equilibrium selection problem in n-person binary coordination games by means of the adaptive play with mistakes (Young 1993). We show that whenever the difference between the deviation losses of respective equilibria is not overwhelming, the stochastic stability exhibits a...

This Paper considers the efficiency and convergence properties of dynamic processes of social and economic interactions, such as exchange economies, multilateral negotiations, merger and divestiture transactions, or legislative bargaining. The key general feature of the economy is that agents...

This paper proposes a central idea in diffusion research is that influential –a minority of individuals who influence an exceptional number of their peers- are important to formation of public opinion. Here we examine this idea, which we call the “influential hypothesis”, using the...

This paper proposes a theoretical explanation for the incremental integration path of Europe until the Monetary Union time. The dynamic partition function game suggests that the presence of externalities across coalitions affects the timing of admission of different players, the equilibrium...

The approach to decision theory has varied from one scholar and school of thought to the other from the development of mathematically complex systems, models and equations to the disregard of this particular academic endeavor altogether due to randomness and overwhelming subjectivity and...

Recent studies suggest that cooperative decision-making in one-shot interactions is a history-dependent dynamic process: promoting intuition versus deliberation has typically a positive effect on cooperation (dynamism) among people living in a cooperative setting and with no previous experience...

The idea of we-thinking, or we-reasoning, is increasingly drawing the attention of more and more economists. The two main contributors are Bacharach and Sugden, and they approach the topic in two different ways. Sugden's aim is to show that we-reasoning is a consistent and logical way of...

HOLM [1995] claims that the prisoners' dilemma story is dubious: Each prisoner may confess even when innocent. However, this apparent failing can be remedied. The story is dubious rather because it is already institution-bound (the trust which binds the prisoners) and, therefore, its range is...

It is shown that concept lattices can be attached in a natural way to any voting protocol. The concept lattices of some voting protocols that are solvable with respect to some prominnent solution concepts and outcome-efficient are studied: it is proved that they typically amount to chains