The canonical bargaining game in economics is the ultimatum game, played by tens of thousands of students around the world over the past three decades. In the ultimatum game, first studied by Werner Guth, Rolf Schmittberger, and Bernd Schwarze (1982), the “proposer” proposes how to split a...

A broad nontechnical coverage of many of the developments in game theory since the 1950s is given, together with some comments on important open problems and where some of the developments may take place. The reference section given serves only as a minimal guide to the many thousands of books...

This paper explores the scope for synthesis between economic and systemic approaches to the understanding of legal evolution. The evolutionary and epistemic branches of game theory predict that stable norms will emerge when agents share common beliefs concerning future states of the world....

Intuitively, we expect that players who are allowed to engage in costless communication before playing a game would be foolish to agree on an inefficient equilibrium. At the same time, however, such preplay communication has been suggested as a rationale for expecting Nash equilibrium in...

Incentives to innovate is a central element of innovation theory. In the private-investment model, innovators privately fund innovation and then use intellectual property protection mechanisms to appropriate returns from these investments. In the collective-action model, public subsidy funds...

After highly fragmented civil wars, order is often secured through the selective co-optation of rebel field commanders and atomized insurgents. This paper presents a formal model of civil war settlement as a coalition formation game between various regime and rebel factions. This approach...

This study investigates factors that influence the termination of an international joint venture (IJV) and examines how the resulting wholly owned subsidiary’s (WOS) proximity to its previous partner can promote cluster formation in an emerging economy. The author uses a game-theoretic...

This paper argues that the key issue for defining and solving the Eurozone’s (EZ) difficulties lies in readjusting the relationship between the centre and the periphery of the EZ. Our argument proceeds in two steps. Firstly, the basic finance problem of a centre-periphery system is captured by...

Cooperative games model situations where the actors can collaborate, can form coalitions. We know many static models, but our world is more complex. Despite the fact that there have been several experimental studies on coalition formation there are only very few theoretical papers dealing with...