The conventional wisdom that mobile operators are able to act as monopolists in pricing call termination on their networks has recently been challenged by Hutchison 3G’s entry into European mobile markets. The European Commission’s electronic communications regime allows national regulatory...

The conventional wisdom that mobile operators are able to act as monopolists in pricing call termination on their networks has recently been challenged by Hutchison 3G’s entry into European mobile markets. The European Commission’s electronic communications regime allows national regulatory...

This paper gives a brief overview of an evolutionary theory of fairness. The ideas are fleshed out in Binmore's book 'Natural Justice' (Oxford University Press, New York, 2005.), which is itself a condensed version of his earlier two-volume book 'Game Theory and the Social Contract' (MIT Press,...

This is a contribution to the growing experimental literature on how trial-and-error adjustment processes can establish a convention for coordination on an equilibrium in a game. A simple bargaining game introduced by Nash is used for this purpose. Subjects are conditioned in different...

We examine an Outside Option Game in which player I submits a claim for a share of a cake while player II simultaneously either makes a claim or chooses to opt out. If player II opts out, then she receives an opt-out payment while player I receives nothing. If player II opts in and if the claims...

This paper develops an approach to equilibrium selection in game theory based on studying the equilibriating process through which equilibrium is achieved. The differential equations derived from models of interactive learning typically have stationary states that are not isolated. Instead, Nash...

In 1987, I wrote a paper (Binmore [14]) that questioned the rationality of the backward induction principle in finite games of perfect information. Since that time, a small literature has grown up in which Antonelli and Bicchieri [1], Ben-Porath [9], Bicchieri [10,11], Bonanno [21,22], Pettit...

This paper develops an approach to equilibrium selection in game theory based on studying the equilibriating process through which equilibrium is achieved. The differential equations derived from models of interactive learning typically have stationary states that are not isolated. Instead, Nash...

The Paradox of the Absent-Minded Driver is used in the literature to draw attention to the inadequacy of Savage's theory of subjective probability when its underlying epistomological assumptions fail to be satisfied. This note suggests that the paradox is less telling when the uncertainties...

This paper develops an approach to equilibrium selection in game theory based on studying the equilibriating process through which equilibrium is achieved. The differential equations derived from models of interactive learning typically have stationary states that are not isolated. Instead, Nash...