The purification Theorem of Harsanyi (1973) argues that one can understand the mixed strategy Nash equilibrium of a simultaneous move complete information game as the limit of a particular Bayesian Nash equilibrium of the incomplete information version of the same game where the players choose...

This paper presents a generalized Stackelberg model of market leaderhip with noisy observation. The current prevailing Stackelberg model and Cournot market are two extreme cases of this generalized Stackelberg model. As the follower relies less on the inaccurate noisy observation and more on...

Perfect Bayesian equilibrium is not a subset of Nash equilibrium. Perfect Bayesian equilibrium requires players to have beliefs that are consistent with the equilibrium strategies of other players. Nash equilibrium does not explicitly specify the beliefs of the players. However, the default...

The type of the mainstay of the military forces of a state decides the decree of economies of scope that exist among the military, the internal security establishment and, the fiscal apparatus which taxes and provides public goods. Economies of scope reduce the cost of military pursuit and other...

This paper uses Bayesian equilibrium by iterative conjectures approach to solve a noisy sequential game, that is, a sequential game with inaccurate observation clouded by noise. Bayesian equilibrium by iterative conjectures requires players to form conjectures about the strategies of the other...

This paper studies a new refinement for Perfect Bayesian equilibrium, Bayesian equilibrium by iterative conjectures (BEIC). BEIC requires players to make predictions, starting from first order uninformative predictive distribution functions (or conjectures) and keep updating with statistical...

This paper analyzes an infinitely repeated game of contest for resources. It studies how rent seeking technology affects the long term sustainability of pluralistic competition where there is more than one contestant to resources. If there is over dissipation of rent, pluralistic competition is...

This paper uses a formal model to analyze the relationship between interstate military conflicts and international trade and economic cooperation. The paper studies an infinitely repeated game. In the game, two states set their defense expenditures to deter the other from starting a war and...

This paper proposes a way to solve two sided incomplete information games which generally generates a unique equilibrium. Players in the games form conjectures about what other players want to do, starting from first order uninformative conjectures and keep updating with games theoretic and...

Taxation and state enforcement of property rights share many common resources. Both are involved in determining the revenue of the state. Due to these interactions, taxation and property rights enforcement of a proprietary state are complementary. Any change in the administrative capacity of the...