I explore how and and to what extent policy uncertainty can account for the observed long-run cross-country differences in capital price and levels of aggregate investment and output. I present a model economy where the industry-level policy-related investment cost is uncertain. Holding the...

This paper presents an evolutionary game theoretic analysis of the dynamics of a population of prisoners' dilemma players where the probability of encountering an cooperator is higher for cooperators than for noncooperators. Examples from biological and cultural evolution are presented. There is...

A formal scheme is described for coalition formation in a game of interconnected participants with monotonic utility functions. Special coalitions are studied which have an advantage over the rest in the sense of higher utility for each of the participants taken separately.

This paper examines the political economy of redistribution when voters have asymmetric information about the redistributive preferences of politicians and the latter cannot make credible policy commitments. The candidates in each party are endogenously selected by a process of Nash Bargaining...

Reinforcement learning has proved quite successful in predicting subjects' adjustment behaviour in repeatedly played simple games. However, reinforcement learning does not predict convergence to the efficient cell in the minimal information game of mutual fate control, while earlier...

It is now almost a common truth that society needs to avoid environment contamination or damage become significant for nature protection programs of the government and wild life preservation efforts. A possible outcome of such efforts might occasionally be a voluntary solution, which results...

Earlier experiments have shown that under little information subjects are hardly able to coordinate even though there are no conflicting interests and subjects are organised in fixed pairs. This is so, even though a simple adjustment process would lead the subjects into the efficient, fair and...

We propose a quantum-like description of markets and economics. The approach has roots in the recently developed quantum game theory. Quantum Zeno paradoxes and noncomutative quantum mecanics are also discussed.

We look at a job-market model of bilateral uncertainty. Workers are uncertain about what job descriptions advertised by firms really mean and firms are uncertain about the qualifications of workers before they are interviewed. Both types of uncertainty can be resolved but both processes are...

For each outcome (i.e.~a payoff vector augmented with a coalition structure) of a TU-game with a non-empty coalition structure core there exists a finite sequence of successively dominating outcomes that terminates in the coalition structure core. In order to obtain this result a restrictive...