We offer a formal game-theoretic framework that enables the analysis of situations whereby rational individuals with different beliefs and views of the world agree to a shared course of action. We define the notion of a course of action which, unlike a strategy profile, does not require a...

We offer a formal game-theoretic framework that enables the analysis of situations whereby rational individuals with different beliefs and views of the world agree to a shared course of action. We define the notion of a course of action which, unlike a strategy profile, does not require a...

In this paper we propose a new class of tests for the martingale difference hypothesis based on the moment conditions derived by Bierens (1982). In contrast with the existing consistent tests, the proposed test has a standard limiting distribution and is easy to implement. Comparing with the...

Within the framework of (pure) exchange economies, we demonstrate that the von Neumann and Morgenstern stable set in the allocation space may differ from that in the corresponding utility space. Following Harsanyi (1974, Management Sci. 20, 1472-1495), we then define the notion of the...