Game theory can be defined as the study of mathematical mod- els of conflict and cooperation between intelligent and rational decision makers (Myerson 1991). Game-theory concepts apply in economy, sociology, biology, and health care, and whenever the actions of several agents (individuals,...

This paper provides a framework to study how lobby-government interactions affect environmental R&D programs, government' green policies, firms' profitability, and environmental quality when a Northern country and a Southern country are engaged in trade. In our model, the motivation for an...

Although tactical decisions made by managers during a match of team sports are very important, there have been few quantitative analyses which include the effect of interaction between both teams' decisions, because of the complexity of the problem where one team's decision will affect the other...

This lecture on entry is a transcript of a second-year MBA class at the Stephen M. Ross School of Business, University of Michigan. At various points, student comments and comments by Francine Lafontaine, the co-teacher of this course, appear. Accompanying this lecture are the PowerPoint slides...

A vast and often confusing economics literature relates competition to investment in innovation. Following Joseph Schumpeter, one view is that monopoly and large scale promote investment in research and development by allowing a firm to capture a larger fraction of its benefits and by providing...

This lecture, PowerPoint slides, and movie provide a relatively non-technical introduction to cartels. After describing the characteristics of cartels predicted by economic theory, the instructor shows a movie of the "secret" meetings of the lysine cartel. This movie demonstrates that an actual...

A 4-person quota game is analyzed and discussed, in which players find it beneficial to pay others, in order to encourage favorable coalition structure.