A recent experimental literature focusing on overcoming coordination problems in strategic games points out to the need for incentivizing players to follow third-party recommendations to coordinate on better outcomes. In this paper, we consider finite normal-form games to strengthen the...

This paper introduces a class of endogenously proportional bargaining solutions. These solutions are inside the class of Directional solutions, which Chun and Thomson (1987) proposed to generalize (exogenously) proportional solutions of Kalai (1977). Endogenously proportional solutions are...

In this paper, we offer for two-person games an alternative characterization of Iterated Kalai-Smorodinsky-Nash Compromise (IKSNC), which was introduced and first characterized by Saglam (2015) for n-person games. We present an axiom called Gamma-Decomposability, satisfied by any solution that...

We study the effects of non-sterilized intervention on a spot foreign exchange rate using a multi-period game-theoretical model which involves an unspecified number of competitive traders, a finite number of strategic traders (forex dealers), and the central bank of the home country. Simulating...

We study the effect of observability on the noncontractible investment of a regulated firm with private marginal cost information. We show that the observability reduces investment, pointing to the regulated firm's prevention of ratcheting. This result, which is in line with an earlier finding...

Recent experimental studies find excessive truth-telling in sender-receiver games. We show that this phenomenon is robust to the random intervention of a truthful regulator. In addition, intervention significantly increases the excessive trust of receivers while the overall percentage of...

Introduction to Strategic Form Games -- Dominance -- Rationalizability -- Nash Equilibrium -- Perfect Equilibrium -- Evolutionary Stable Strategies -- Correlated Equilibrium -- Bayesian Nash Equilibrium -- Introduction to Extensive Form Games -- Subgame Perfect Nash Equilibrium -- Sequential...