Using a two-player Tullock-type contest, we show that intuitively and structurally different contests can be strategically equivalent. Strategically equivalent contests generate the same best response functions and, as a result, the same equilibrium efforts. However, strategically equivalent...

In this paper, we run a laboratory experiment to compare two mechanisms in a procurement setting: Right-of-First-Refusal (ROFR) where the incumbent supplier is granted a privileged position versus standard First-Price-Auction (FPA). To this end, we have subjects compete against a computerized...

The law of maturity is the belief that less-observed events are becoming mature and, therefore, more likely to occur in the future. Previous studies have shown that the assumption of infinite exchangeability contradicts the law of maturity. In particular, it has been shown that infinite...

Weakly acyclic games form a natural generalization of the class of games that have the finite improvement property (FIP). In such games one stipulates that from any initial joint strategy some finite improvement path exists. We classify weakly acyclic games using the concept of a scheduler...

We study the implications for monopoly pricing strategies and product diversity of consumers’ temptation when the differentiation of the product is horizontal. Consumers have an ex-ante ideal product (“commitment preferences”), but they and the monopolist are aware that consumers may fall...

The standard model of knowledge, <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$(\varOmega ,P)$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mrow> <mo stretchy="false">(</mo> <mi mathvariant="italic">Ω</mi> <mo>,</mo> <mi>P</mi> <mo stretchy="false">)</mo> </mrow> </math> </EquationSource> </InlineEquation>, consists of state space, <InlineEquation ID="IEq2"> <EquationSource Format="TEX">$$\varOmega $$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mi mathvariant="italic">Ω</mi> </math> </EquationSource> </InlineEquation>, and possibility correspondence, <InlineEquation ID="IEq3"> <EquationSource Format="TEX">$$P$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mi>P</mi> </math> </EquationSource> </InlineEquation>. Usually, it is assumed that <InlineEquation ID="IEq4"> <EquationSource Format="TEX">$$P$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mi>P</mi> </math> </EquationSource> </InlineEquation> satisfies all knowledge axioms (Truth Axiom, Positive Introspection Axiom, and...</equationsource></equationsource></inlineequation></equationsource></equationsource></inlineequation></equationsource></equationsource></inlineequation></equationsource></equationsource></inlineequation>

Cost-effectiveness analysis suggests that a society should allocate its health care budget in order to achieve the greatest total health for its budget. However, in ‘rescue’ cases, where an individual’s life is in immediate peril, reasoning in terms of cost-effectiveness can appear...

The desirability relation was introduced by Isbell (A class of simple games 25: 423–439, <CitationRef CitationID="CR8">1958</CitationRef>) to qualitatively compare the a priori influence of voters in a simple game. In this paper, we extend this desirability relation to simple games with coalition structure. In these games, players...</citationref>