Economic agents care about their relative well-being, and the comparisons are usually local. We capture this using a network model, in which an agent's payoff depends on the ranking of their allocation among their network neighbors’. Given a network, an allocation is called α-stable if no...

This paper develops a framework for studying repeated matching markets. The model departs from the Gale-Shapley matching model by having a fixed set of long-lived players (firms) match with a new generation of short-lived players (workers) in every period. I define history-dependent and...

Farsighted formulations of coalitional formation, for instance by Harsanyi (1974) and Ray and Vohra (2015), have typically been based on the von Neumann-Morgenstern (1944) stable set. These farsighted stable sets use a notion of indirect dominance in which an outcome can be dominated by a chain...

I develop two related solution concepts, equilibrium coalitional behavior and credible equilibrium coalitional behavior, which capture foresight and impose the requirement that each coalition in a sequence of coalitional moves chooses optimally among all its available options. The model does not...

The value is a solution concept for n-person strategic games, developed by Nash, Shapley, and Harsanyi. The value of a game is an a priori evaluation of the economic worth of the position of each player, reflecting the players' strategic possibilities, including their ability to make threats...

Strategy-proofness (SP) is a sought-after property in social choice functions because it ensures that agents have no incentive to misrepresent their private information at both the interim and ex post stages. Group strategy-proofness (GSP), however, is a notion that is applied to the ex post...

We consider a (pure) public goods provision problem with voluntary participation in a quasi-linear economy. We propose a new hybrid solution concept, the free-riding-proof core (FRP-Core), which endogenously determines a contribution group, public goods provision level, and how to share the...

In a matching problem between students and schools, a mechanism is said to be robustly stable if it is stable, strategy-proof, and immune to a combined manipulation, where a student first misreports her preferences and then blocks the matching that is produced by the mechanism. We find that even...

We develop observable restrictions of well-known theories of bargaining over money. We suppose that we observe a finite data set of bargaining outcomes, including data on allocations and disagreement points, but no information on utility functions. We ask when a given theory could generate the...

We study collective choice via an endogenous agenda setting process. At each stage, a status quo is implemented unless it is replaced by a majority (winning coalition) with a new status quo outcome. The process continues until the prevailing status quo is no longer challenged. We impose a...