Rent dissipation measures the social loss in rent-seeking contests and therefore is the main source of interest in the rent-seeking literature. We derive narrow bounds for the amount of rent dissipation in a sequential lottery contest within players and show that the rent dissipation is larger...

The literature on aggregative games, which has been applied in the study of contests, has focused on simultaneous games. We apply aggregative games techniques in a novel fashion in the analysis of sequential lottery contests with n players. It is shown that: (1) there exists a unique subgame...

This paper examines the behavior of adaptive agents in a stochastic dynamic version of the Hotelling's location model. We conduct an innovative agent-based simulation under the Hotelling's setting with two agents who use the Nash Q-learning mechanism for adaptation. This allows us to explore...

This paper extends the conventional literature on strategic trade policy in reciprocal dumping model to the context that involves market demand uncertainty and incomplete information. In order to highlight the role of uncertainty and incomplete information, a simple scenario with linear...

We analyze how sharing rules affect Nash equilibria in Bertrand games, where the sharing of profits at ties is a decisive assumption. Necessary conditions for either positive or zero equilibrium profits are derived. Zero profit equilibria are shown to exist under weak conditions if the sharing...

The standard approach to nominal illusion in Economics sees it as a transitory phenomenon, as economic agents eventually see through the nominal veil, making the right choices. Recent empirical studies suggest that money illusion may persist, distorting real prices in a variety of economic...

Renewable energy sources (RES) play an increasing role in many electricity systems thanks to climate and support policies and subsequent cost reductions in recent years. Compared to conventional generation technologies, RES has two main important distinctive features: First, their cost pattern...

We provide an evolutionary foundation to evidence that in some situations humans maintain either optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and...

This paper is part I of a two-part paper. It proposes a two-stage game to analyze imperfect competition of producers in zonal power markets with a day-ahead and a real-time market. We consider strategic producers in both markets. They need to take both markets into account when deciding what to...