Games, Volume 12, Issue 2

The exit of the United Kingdom from the European Union has had profound economic and political effects. Here, we look at a particular aspect, the power distribution in the Council of the European Union. Using the Shapley–Shubik power index, we calcul...

The emergence of the modern gig economy introduces a new set of employment considerations for firms and laborers that include various trade-offs. With a game-theoretical approach, we examine the influences of technology, policy and markets on firm an...

Peer punishment is widely lauded as a decentralized solution to the problem of social cooperation. However, experimental evidence of its effectiveness primarily stems from public good structures. This paper explores peer punishment in another structu...

Successful algorithms have been developed for computing Nash equilibrium in a variety of finite game classes. However, solving continuous games—in which the pure strategy space is (potentially uncountably) infinite—is far more challenging. Nonetheles...

This paper tests the hypothesis that a (partial) reason why cartels—collective but costly and non-binding price agreements—lead to higher prices in a Bertrand oligopoly could be because of a selection effect: decision-makers who are willing to form p...

We present an agent-based model of manipulating prices in financial markets through spoofing: submitting spurious orders to mislead traders who learn from the order book. Our model captures a complex market environment for a single security, whose co...

This work aims to provide different perspectives on the relationships between cooperative game theory and the research field concerning climate change dynamics. New results are obtained in the framework of competitive bargaining solutions and related...

We investigate gender differences in lying behavior when the opportunity to tell lies is repeated. In specific, we distinguish the situations in which such an opportunity can be planned versus when it comes as a surprise. We utilize data from an exis...

We introduce a new class of matching mechanisms—quantile stable mechanisms—that generate stable matchings that can be seen as a compromise between sides of a two-sided market. We show that responsiveness is a sufficient condition for the existence of...

We explore how an incremental change in complexity of strategies (“an inch of memory”) in repeated interactions influences the sets of Nash equilibrium (NE) strategy and payoff profiles. For this, we introduce the two most basic setups of repeated ga...

Knowing the gender of a counterpart can be focal in the willingness to collaborate in team settings that resemble the classic coordination problem. This paper explores whether knowing a co-worker’s gender affects coordination on the mutually benefici...

This paper presents the results of an experimental study of takeover auctions with toeholds. Consistent with the theory, we find a positive effect of toeholds on bidding. Such an effect, however, is of a lower magnitude and the bidding premium functi...

The main goal of collective punishment (CP) is the deterrence of future “wrong-doing” by freedom fighters or terrorists, protesters against an authoritative government, polluters, students playing pranks on their teacher, football teams lacking enthu...

Hypocrisy is the act of claiming moral standards to which one’s own behavior does not conform. Instances of hypocrisy, such as the supposedly green furnishing group IKEA’s selling of furniture made from illegally felled wood, are frequently reported...

During the pandemic, school districts have adopted hybrid schedules to continue the education of the students while maintaining social distance. In a hybrid schedule, students in the same classroom are usually divided into two groups and students onl...

Online advertising often involves targeting ads to certain types of consumers where ads are commonly sold by generalized second price auctions. However, such an auction or mechanism could be considered unfair if similar consumers are consistently sho...

This paper derives a dynamic path of ongoing terror attacks as a function of terrorists’ capacity and a target government’s counterterror capacity. The analysis provides several novel insights and characterizations. First, the effect of counterterror...

A game between a representative household and a government was analyzed. The household chose which fractions of two currencies to hold, e.g., a national currency such as a Central Bank Digital Currency (CBDC) and a global currency such as Bitcoin or...

We investigate whether revealing the identities in a public good game that includes a donation incentive leads to higher contributions to the public good. Previous evidence suggests that contributions to a public good increase significantly when thes...

We develop the theory of stability for aggregate matchings used in empirical studies and establish fundamental properties of stable matchings including the result that the set of stable matchings is a non-empty, complete, and distributive lattice. Ag...

Each year, millions of middle school graduates in China take a standardized test and compete for high school positions. Unlike other cities, Guangzhou still uses the immediate acceptance mechanism but implements a policy that students in the high-sco...

In this paper, we analyze the long run dynamics of a multi-agent game played on a one-dimensional lattice with periodic boundary conditions, i.e., a ring. Agents repeatedly play a 2 × 2 coordination game with neighbors where the payoff dominant actio...