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We show that in symmetric two-player exact potential games, the simple decision rule "imitate-if-better" cannot be beaten by any strategy in a repeated game by more than the maximal payoff difference of the one-period game. Our results apply to many interesting games including examples like 2x2...
Persistent link: https://www.econbiz.de/10009569667
discount factors. Afterwards, we examine different concepts of renegotiation-proofness and extend the characterization to … renegotiation-proof payoffs. …
Persistent link: https://www.econbiz.de/10003848861
This paper analyzes the stability of capital tax harmonization agreements in a stylized model where countries have formed coalitions which set a common tax rate in order to avoid the inefficient fully non-cooperative Nash equilibrium. In particular, for a given coalition structure we study to...
Persistent link: https://www.econbiz.de/10013108831
This paper analyzes the stability of capital tax harmonization agreements in a stylized model where countries have formed coalitions which set a common tax rate in order to avoid the inefficient fully non-cooperative Nash equilibrium. In particular, for a given coalition structure we study to...
Persistent link: https://www.econbiz.de/10009506562
In this paper I set forth an antitrust remedy for the oligopolistic pricing problem. Oligopoly pricing resembles a repeated prisoners' dilemma game. Each firm has an incentive to moderately lower its price and thus increase its sales at its competitors' expense. However, each firm knows that its...
Persistent link: https://www.econbiz.de/10014049971
We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical...
Persistent link: https://www.econbiz.de/10014215253
Case study and model results lend some optimism for the potential of small coalitions with partially excludable public goods to substantially deepen international cooperation on energy and climate issues. Drawing motivation from other issue areas in international relations ranging from nuclear...
Persistent link: https://www.econbiz.de/10014137380
We study the effect of heterogeneous growth in demand on resource extraction. Using the Great Fish War framework of Levhari and Mirman (1980), we show that heterogeneity in demand growth has a profound effect on both cooperative (Cournot-Nash and Stackelberg) and cooperative solutions
Persistent link: https://www.econbiz.de/10014143283
This paper presents a simple Ramsey-type model example where two infinitely-living agents have same utility function except for time preference, and shows that equilibrium is indeterminate that is to be interpreted as being non-existent. The issues regarding New Keynesian transversality...
Persistent link: https://www.econbiz.de/10012982564
We study two n-player sequential network formation games with externalities. Link formation is tied to simultaneous transfer selection in a Nash demand like game in each period. Players in groups can counterpropose. We give necessary and sufficient conditions for efficiency in terms of cyclical...
Persistent link: https://www.econbiz.de/10008780592