This paper discusses, from the perspective of Austrian economics, the merits and drawbacks of game theory in economics. It begins by arguing that Austrians have neglected game theory at their peril, and then argues that game theoretic reasoning may be one way of modelling key Austrian insights,...

We analyze the structure of bilateral communication links among consumers in virtual communities by a game-theoretic model of network formation. First, link specificity is incorporated, meaning that the more direct links somebody has to maintain with others, the less she is able to specify her...

Due to a lot of entities engaged in PPP, such as government (central state or local) authority or a government-owned enterprise, project sponsors, construction companies, providers of necessary equipment, plant operators, insurers, etc., they must to co-operate one another. This co-operation in...

Economic theory predicts that it is impossible to have cooperation in finitely repeated games such as a prisoner's dilemma game without communication. In an experiment on a voluntary participation game with a non-excludable public good that is a version of a Hawk-Dove game, we obderved that...

Pollution of transboundary rivers requires cooperation between the countries involved in order to alleviate the consequences. This paper applies game theoretic analyses to nitrate emissions in the Rhine river basin. It assumes that the 50% emission reduction policy agreed upon by the...

This paper analyzes the literature concerning models of endogenous mergers. Traditional models of exogenous mergers analyze mergers as isolated phenomena. However, some empirical facts about M&A don't seem to be explained in this literature. Models of endogenous mergers take into account all...

In alliances jointly developing product and market, we first investigate how (a) the number of networks competing to develop a product, (b) the number of alternative technology platforms, and (c) market sensitivity to product development expenditures affect investments of partnering firms. We...

This paper explores whether and how a firm should adapt its strategy in view of consumer use of prior customer ratings. Specifically, we consider optimal pricing and whether the firm should offer an unexpected frill to early customers to enhance their product experiences. We show that if price...