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We consider an extension of minimum cost spanning tree (mcst) problems in which some agents do not need to be connected to the source, but might reduce the cost of others to do so. Even if the cost usually cannot be computed in polynomial time, we extend the characterization of the Kar solution...
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Location problems describe those situations in which one or more facilities have to be placed in a region trying to optimize a suitable objective function. Game theory has been used as a tool to solve location problems and this paper is devoted to describe the state-of-the-art of the research on...
Persistent link: https://www.econbiz.de/10010682649
For a finite player cooperative cost game, we consider two solutions that are based on excesses of coalitions. We define per-capita excess-sum of a player as sum of normalized excesses of coalitions involving this player and view it as a measure of player's dissatisfaction. So, per-capita...
Persistent link: https://www.econbiz.de/10010711587
Trendsetters wish to be perceived as the type that defines normative behavior. Incorporating norm formation in Bernheim (1994)’s model yields equilibria with social considerations concentrating behavior, allowing multiple conformist pools. Refinements link each pooling equilibrium to a unique...
Persistent link: https://www.econbiz.de/10011263424
This paper investigates whether a contest organizer should disclose private information about bidders’ abilities in a multi-prize all-pay auction. Bidders’ abilities are randomly distributed and observed by the contest organizer; the organizer decides whether to disclose this information...
Persistent link: https://www.econbiz.de/10011116211
“Overbidding” with respect to risk-neutral Nash predictions in first-price auction experiments has been consistently reported in the literature. One possible explanation for overbidding is that participants in these experiments do not have a clear perception of probabilities, which causes...
Persistent link: https://www.econbiz.de/10011189538
A group of rational individuals with common interest need to select one of two outcomes. The optimal decision depends on whether certain premises or pieces of evidence are established as being true, and each member receives a noisy signal of the truth value of the relevant premises. Should the...
Persistent link: https://www.econbiz.de/10011190620
In a laboratory-controlled environment we provide experimental evidence on the effects of transparency (complete over incomplete information) and empowerment on trust and trustworthiness. We implement a simple version of the standard two-person investment game in a repeated game context with...
Persistent link: https://www.econbiz.de/10010869662