We characterize Nash equilibrium by postulating coherent behavior across varying games. Nash equilibrium is the only solution concept that satisfies the following axioms: (i) strictly dominant actions are played with positive probability, (ii) if a strategy profile is played in two games, it is...

This paper analyzes the allocation of the total toll collected in a highway among its segments. Based on different toll charging rules, we propose the Segments Equal Sharing method, the Exits Equal Sharing method, and the Entrances Equal Sharing method. We provide axioms and characterize these...

This paper analyzes the allocation of the total toll collected in a highway among its segments. Based on different toll charging rules, we propose the Segments Equal Sharing method, the Exits Equal Sharing method, and the Entrances Equal Sharing method. We provide axioms and characterize these...

Developing normative foundations for optimal play in two-player zero-sum games has turned out to be surprisingly difficult, despite the powerful strategic implications of the Minimax Theorem. We characterize maximin strategies by postulating coherent behavior in varying games. The first axiom,...

Developing normative foundations for optimal play in two-player zero-sum games has turned out to be surprisingly difficult, despite the powerful strategic implications of the Minimax Theorem. We characterize maximin strategies by postulating coherent behavior in varying games. The first axiom,...

A number of different models with behavioral economics have a reduced form rep- resentation where potentially boundedly rational decision-makers do not necessarily in- ternalize all the consequences of their actions on payo¤ relevant features (which we label as psychological states) of the...