We deal with an experiment in which a human player plays a repeated prisoners' dilemma game against a computer playing the tit-for-tat strategy.
We deal with the linkage of infinitely repeated games. Results are obtained by analysing the relations of the feasible individual rational payoff regions of the isolated games and the linked game. In fact we have to handle two geometric problems related to Minkowski sums, intersections and Pareto boundaries of convex sets.
We show how the fixed point problem for a special type of correspondence R which satisfies a factorisation property can be handled by considering an associated more simple fixed point problem for a correspondence B with domain typically a subset of ℝ. In addition we analyse the fixed point problem for B under additional conditions on R that guarantee that B is at most singleton-valued. In fact we generalize, improve and make more conceptual a game theoretic technique developed by Selten and Szidarovszky.
We reconsider the recent work by Okuguchi (2010) on (possibly asymmetric) Cournotian firms with two production factors, one being inferior for each firm. It is shown there that an increase in the price of the inferior factor does raise the equilibrium industry output. In addition of providing a simpler and more rigorous proof of that result, we generalize it to the case of technologies with s ≥ 2 factors and also allow some firms not to use the inferior one.
The article corrects, improves and formalises the procedure in Heijman and Goossen (2009) to determine an optimal landscape and its monetary value, assuming a Cobb-Douglas benefit function.
Economic development generally implies that traditional egalitarian norms and beliefs are replaced by modern individualistic values. Particularly when opportunities for advancement are unequally presented to people, this transformation may be accompanied by polarization and violent conflict. We illustrate this point by describing the processes of land privatization in Sub-Saharan Africa and then present two models that capture some salient aspects of this transformation in rural communities, including the possibility of polarization. We find that the support of egalitarian norms is notably strong when new opportunities are available for only a few people or when the community is socially unstable. Moreover, in unstable communities, polarization is strongest when the group with the most lucrative opportunities comprises half the population.
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We revisit and compare equilibrium uniqueness results for homogeneous Cournot oligopolies. In doing this we provide various useful and interesting results for which it is difficult to give appropriate reference in the literature. We also propose problems for future research.
We consider a class of homogeneous Cournot oligopolies with concave integrated price flexibility and convex cost functions. We provide new results about the semi-uniqueness and uniqueness of (Cournot) equilibria for the oligopolies that satisfy these conditions. The condition of concave integrated price flexibility is implied by (but does not imply) the log-concavity of a continuous decreasing price function. So, our results generalize previous results for decreasing log-concave price functions and convex cost functions. We also discuss the particular type of quasi-concavity that characterizes the conditional revenue and profit functions of the firms in these oligopolies and we point out an error of the literature on the equilibrium uniqueness in oligopolies with log-concave price functions. Finally, we explain how the condition of concave integrated price flexibility relates to other conditions on the price and revenue functions usually considered in the literature, e.g., the concavity of the price function or the concavity of the aggregate revenue associated to a price function.
One might expect that after their identification in the 19th century, all aspects of Giffen goods would have been studied by now. This appears not to be the case. This book contains the latest insights into the theory of Giffen goods. In the past, surprisingly few goods could be categorized as ''Giffen''. This may be because of a lack of understanding the character of these goods. Therefore, the theories explained in this book may also produce a solid bais for further empirical reserach in the field. Experts throughout the world have contributed to this book, which predominantly pursues a mathematically rigorous approach. It may be used by researchers in the fleld of fundamental economics and in graduate-level courses in advanced microeconomics.
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We present a theoretical review of the literature on concrete utility functions for Giffen and inferior goods within the context of the utility maximisation problem under a budget restriction and provide new functional forms. The presentation is organised around the specific properties such utility functions have. These properties include strict increasingness, quasi-concavity, and the applicability of Gossen's second law.
We consider Giffen goods for the very general setting of an upper semi-continuous utility function. Two not equivalent definitions for this notions are discussed. Concerning this we show that there exists a (well-defined) non-decreasing demand function ℝ++ → ℝ that is nowhere strictly increasing. Also we reconsider the relation between Giffen and inferior goods.
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We generalize a less known Nash equilibrium uniqueness result for games in strategic form. Its power is illustrated by applying it to a Public Goods Game, a Homogeneous Cournot Oligopoly Game and a Formal Transboundary Pollution Game.
We analyze a game in strategic form, where each player′s payoff depends on his action and his social status, which is given by his rank in the actions distribution. Our focus is on the relation between the degree of heterogeneity among status-seeking players and the distribution of their Nash equilibrium actions. We find that if among players intrinsic concerns are sufficiently important relative to status concerns, individual equilibrium actions diverge, but if status concerns are relatively important, individual equilibrium actions are the same. Another key result of the analysis is that, in contrast to what is usually claimed, status seeking need not always be socially inefficient. If players are sufficiently heterogeneous, there exists a Nash equilibrium that is unique, separating, and Pareto efficient.
