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It will be shown that for rational players with a sufficiently large time horizon it is advantageous to keep promises and not to cheat even if cheating is the optimal behaviour in the short run. This explains why ethics could develop in a market economy where incentives to cheat are ubiquitous.
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This paper studies a supply chain consisting of two suppliers and an assembler who also acts as a retailer in a single period model. The suppliers provide complementary modules to the assembler and the latter assembles the final products and sells them to meet a stochastic demand. Each supplier...
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We study two kinds of buy-it-now options, temporary and permanent, under a theoretical model of Stackelberg game. In this two-stage game, the bidders, as the followers, use a two-threshold strategy to determine whether to bid or directly buy the item at the posted price, given an auction...
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Monetary Policy in Interdependent Economies provides the first comprehensive overview of the implications of using game theory to analyze interactions among national monetary policymakers. It synthesizes the pessimistic view of sovereign policymaking that results from the analysis of one-shot...
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The digital revolution of the information age and in particular the sweeping changes of scientific communication … brought about by computing and novel communication technology, potentiate global, high grade scientific information for free …. The arXiv for example is the leading scientific communication platform, mainly for mathematics and physics, where everyone …
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