We propose a method to identify the ranking of focal points (Schelling, 1960) on the individual level. By contrast to conventional coordination, where subjects bet on only one alternative, subjects coordinate by the distribution of points. This allows them to invest in multiple alternatives and...

The stag-hunt game is a prototype for social contracts. Adopting a new and better social contract is usually challenging because the current one is already well established and stable due to sanctions imposed on non-conforming members. Thus, how does a population shift from the current social...

This chapter defines defense economics and indicates how it differs from other subfields of economics. The nature and topics of defense economics are presented. A brief history of the field is also reviewed. The current importance of defense economics in the post-cold war era is discussed....

Public goods games often assume that the effect of the public good is a linear function of the number of contributions. In many cases, however, especially in biology, public goods have nonlinear effects, and nonlinear games are known to have dynamics and equilibria that can differ dramatically...

Experimental studies show that the Nash equilibrium and its refinements are poor predictors of behavior in non-cooperative strategic games. Cooperation models, such as ERC and inequality aversion, yield superior predictions compared to the standard game theory predictions. However, those models...