We analyze the optimal choice of risk in a two-stage tournament game between two players that have different concave … utility functions. At the first stage, both players simultaneously choose risk. At the second stage, both observe overall risk … and simultaneously decide on effort or investment. The results show that those two effects which mainly determine risk …

group of players who either go for the risk dominant equilibrium or act in a boundedly rational manner. This heterogeneity …

We analyze the optimal choice of risk in a two-stage tournament game between two players that have different concave … utility functions. At the first stage, both players simultaneously choose risk. At the second stage, both observe overall risk … and simultaneously decide on effort or investment. The results show that those two effects which mainly determine risk …

In this note we point out the effect of risk-aversion on both the speed of deterministic convergence and the waiting … times involved in equilibrium selection in 2 X 2 coordination games. Risk-aversion destabilizes the Pareto optimal … convergence within its basin of attraction. It turns out that the first effect is quite significant: moderate levels of risk …

We consider the allotment problems of homogeneous indivisible objects among agents with single-peaked and risk …-peakedness ; risk-averseness ; uniform probabilistic rule …