We study a supply chain in which a consumer goods manufacturer sells its product through a retailer. The retailer undertakes promotional expenditures, uch as advertising, to increase sales and to compete against other retailer(s). The manufacturer supports the retailer’s promotional...

This paper introduces the notion of mixed leadership in non-zero-sum differential games, where there is no fixed hierarchy in decision making with respect to the players. Whether a particular player is leader or follower depends on the instrument variable s/he is controlling, and it is possible...

Trust is a central component of social and economic interactions among humans. While rational self-interest dictates that "investors" should not be trusting and "trustees" should not be trustworthy in one-shot anonymous interactions, behavioral experiments with the "trust game" have found that...

We construct explicit equilibria for strategic market games used to model an economy with fiat money, one nondurable commodity, countably many time- periods, and a continuum of agents. The total production of the commodity is a random variable that fluctuates from period to period. In each...

This paper addresses the question of whether neural networks (NNs), a realistic cognitive model of human information processing, can learn to backward induce in a two-stage game with a unique subgame-perfect Nash equilibrium. The NNs were found to predict the Nash equilibrium approximately 70%...

Evolutionary game theory has shown that in environments characterised by a social-dilemma situation punishment may be an adaptive behaviour. Experimental evidence closely corresponds to this finding but yields contradictory results on the cooperation-enhancing effect of punishment if players are...

We model a simple dynamic process in which myopic agents are matched amongst each other to play a coordination game. The network of player interaction is varied between a regular lattice and a random network allowing us to model contagion in small world networks. Weighting times for an...

This paper deals with the issue of shelf-space allocation and advertising decisions in marketing channels. We consider a network composed of a unique retailer offering the products of two competing manufacturers. The retailer controls the amount of shelf-space to allocate to both brands, while...

Consider an environment where long-lived experts repeatedly interact with short-lived customers. In periods when an expert is hired, she chooses between providing a profitable major treatment or a less profitable minor treatment. The expert has private information about which treatment best...

This paper is concerned with the question of how to define the core when cooperation takes place in a dynamic setting. The focus is on dynamic cooperative games in which the players face a finite sequence of exogenously specified TU-games. Three different core concepts are presented: the...