The envelope theorem is extended to cover the class of discounted and autonomous infinite horizon differential games that possess locally differentiable Nash equilibria. The theorems cover open-loop and feedback information structures and are applied to an analytically solvable linear-quadratic...

This paper presents a dynamic game to analyze how reputational effects may explain differences in economic performances of nondemocratic regimes. A good reputation convinces citizens that the dictator will exert high effort in economic performance. With replacement, a dictator exerts high...

Trust is essential in virtually all economic interactions. In this paper, we build on previous work analyzing the “trust game” from the perspective of evolutionary dynamics. There are two players: an “investor” and a “trustee.” The investor begins with one monetary unit and can...

It is known (see, e.g., Weibull in Evolutionary Game Theory, MIT Press, <CitationRef CitationID="CR7">1995</CitationRef>) that an evolutionarily stable strategy is not necessarily robust against multiple mutations. Precise definition and analysis of “evolutionarily stable strategy against multiple mutations” are not available in the...</citationref>

Open-loop Stackelberg equilibria in linear-state games are subgame perfect. This result holds under the hypothesis of unconstrained final state; whereas we need to take into account suitable final-state conditions in order to correctly formalize certain economic problems. A striking contribution...