Choosing Sides in Matching Games: Nash Equilibria and Comparative Statics

Economica ◽  
1990 ◽  
Vol 57 (227) ◽  
pp. 283 ◽  
Author(s):  
Michael R. Baye ◽  
Thomas F. Cosimano
Keyword(s):  
Nash Equilibria ◽  
Comparative Statics ◽  
Matching Games

Symmetric Equilibria in a Cost-Averting War of Attrition Requiring Minimum Necessary Conceders

2017 ◽  
Vol 18 (1) ◽  
Author(s):  
Geofferey Jiyun Kim ◽  
Bara Kim
Keyword(s):  
Collective Action ◽  
Public Goods ◽  
Nash Equilibria ◽  
Comparative Statics ◽  
Perfect Equilibrium ◽  
War Of Attrition

AbstractThis paper provides an analysis of a cost-averting war of attrition with minimum necessary conceders. All symmetric stationary Nash equilibria are characterized. The multiplicity of equilibria has called for further refinements. We show that there exists a unique symmetric stationary trembling hand perfect equilibrium. Comparative statics results of the trembling hand perfect equilibrium are provided. This paper’s model is motivated by the problem of delayed public goods provisions in collective action settings. Augmenting the number of minimum necessary conceders can curtail delays.

scholarly journals An Explanation of Anomalous Behavior in Models of Political Participation

2005 ◽  
Vol 99 (2) ◽  
pp. 201-213 ◽  
Author(s):  
JACOB K. GOEREE ◽  
CHARLES A. HOLT
Keyword(s):  
Laboratory Experiments ◽  
Nash Equilibria ◽  
Anomalous Behavior ◽  
Comparative Statics ◽  
Quantal Response ◽  
Anomalous Data ◽  
Political Interaction ◽  
Collective Action Problems ◽  
Voting Participation ◽  
Limiting Case

This paper characterizes behavior with “noisy” decision making for models of political interaction characterized by simultaneous binary decisions. Applications include: voting participation games, candidate entry, the volunteer's dilemma, and collective action problems with a contribution threshold. A simple graphical device is used to derive comparative statics and other theoretical properties of a “quantal response” equilibrium, and the resulting predictions are compared with Nash equilibria that arise in the limiting case of no noise. Many anomalous data patterns in laboratory experiments based on these games can be explained in this manner.

Comparative statics for integrable Nash equilibria

1987 ◽  
Vol 23 (1) ◽  
pp. 19-21
Author(s):  
Michael J. Stutzer
Keyword(s):  
Nash Equilibria ◽  
Comparative Statics

A Continuous-Time Model of Multilateral Bargaining

2015 ◽  
Vol 7 (1) ◽  
pp. 208-249 ◽  
Author(s):  
Attila Ambrus ◽  
Shih En Lu
Keyword(s):  
Continuous Time ◽  
Nash Equilibria ◽  
Comparative Statics ◽  
Perfect Equilibrium ◽  
Convex Games ◽  
Continuous Time Model ◽  
Time Model ◽  
Coalitional Bargaining ◽  
Markov Perfect ◽  
Expected Payoffs

We propose a finite-horizon continuous-time framework for coalitional bargaining, in which players can make offers at random discrete times. In our model: (i) expected payoffs in Markov perfect equilibrium (MPE) are unique, generating sharp predictions and facilitating comparative statics; and (ii) MPE are the only subgame perfect Nash equilibria (SPNE) that can be approximated by SPNE of nearby discrete-time bargaining models. We investigate the limit MPE payoffs as the time horizon goes to infinity and players get infinitely patient. In convex games, we establish that the set of these limit payoffs achievable by varying recognition rates is exactly the core of the characteristic function. (JEL C78)

A Theory of Patronized Goods: Inefficient and Efficient Equilibria

2011 ◽  
pp. 65-87 ◽  
Author(s):  
A. Rubinstein
Keyword(s):  
Nash Equilibrium ◽  
Social Policy ◽  
Nash Equilibria ◽  
Institutional Environment ◽  
Social Motivation ◽  
Pareto Optimal ◽  
Market Failures ◽  
Equilibrium Conditions ◽  
Policy Issues

The article considers some aspects of the patronized goods theory with respect to efficient and inefficient equilibria. The author analyzes specific features of patronized goods as well as their connection with market failures, and conjectures that they are related to the emergence of Pareto-inefficient Nash equilibria. The key problem is the analysis of the opportunities for transforming inefficient Nash equilibrium into Pareto-optimal Nash equilibrium for patronized goods by modifying the institutional environment. The paper analyzes social motivation for institutional modernization and equilibrium conditions in the generalized Wicksell-Lindahl model for patronized goods. The author also considers some applications of patronized goods theory to social policy issues.

Effects of Cooking Oil Subsidy Removals on Related Markets in Malaysia: A Comparative Static, Multicommodity, Multi Stage Production Approach

2011 ◽  
Author(s):  
Jamal Othman ◽  
Yaghoob Jafari
Keyword(s):  
Equilibrium Model ◽  
Comparative Statics ◽  
Partial Equilibrium ◽  
Cooking Oil ◽  
Multi Stage ◽  
Supply Factor ◽  
Partial Equilibrium Model ◽  
Factor Markets ◽  
Input Markets ◽  
Production Approach

Malaysia is contemplating removal of most of her subsidy support measures including subsidies on cooking oil which is largely palm oil based. This paper aims to examine the effects of cooking oil subsidy removals on the competitiveness of the oil palm subsector and related markets. This is done by developing and applying a comparative static, multi-commodity, partial equilibrium model with multi-stages of production function for the Malaysian perennial crops subsector which explicitly links different stages of production, primary and intermediate input markets, trade, and policy linkages. Results partly suggest that export of cooking oil will increase by 0.2 per cent due to a 10 per cent cooking oil subsidy reduction, while domestic output of cooking oil may eventually see a net decline of 1.97 per cent. The results clearly point out that the effect of reducing cooking oil subsidies is relatively small at the upstream levels and therefore it only induces minute effects on factor markets. Consequently, the market for other agricultural crops is projected to change very marginally.   Keywords: Multicomodity, comparative statics, partial equilibrium model, output supply-factor markets linkages, effects of cooking oil subsidy removals.

A Dynamic Investment Model with Profit-Sharing in an Interest-Free Economy

1991 ◽  
Vol 8 (1) ◽  
pp. 109-127
Author(s):  
Zaidi Sattar
Keyword(s):  
Optimal Investment ◽  
Integrated Approach ◽  
Building Blocks ◽  
Profit Sharing ◽  
Comparative Statics ◽  
Investment Model ◽  
Financial Contracts ◽  
Endogenous Variables ◽  
Rate Of Profit ◽  
Component Models

The present paper is a contribution to the building blocks of an investmentmodel within the framework of an integrated macroeconomic model of anIslamic economy. Investment behavior in the model is guided by an Islamicethicalvalue system and profit-sharing financial contracts. The typical firm’sinvestment decision is believed to emerge from a dynamic inter-temporalmaximization exercise within an infinite time horizon. The method of Calculusof Variations is applied to arrive at the optimal investment and employmentcriteria for the firm. The result is then incorporated into a macroeconomicmodel to study the behavior of key endogenous variables like national incomeand the rate of profit-share. Comparative statics exercised within a generalequilibrium framework reveal the potency of monetary policy but the neutralityof fiscal policy with respect to output and employment.IntroductionThe past decade has witnessed a tremendous outpouring of interest aswell as effort in the formalization of economic models based on profit-sharingfinancial arrangements as an Islamic alternative to the conventional interestbasedeconomic system. Several macroeconomic models for interest-freeeconomies have been proposed (Anwar 1987; Habibi 1987; Metwally 1981& 1983). The rigor of an integrated approach to such macroeconomic modelhgdepends on the rigor of the component models, namely, the consumption,investment, monetary, and fiscal relationships. Economists have writtenextensively on different aspects of consumer behavior in Islamic societies.Kahf (1978) and Khan (1984), among others, have contributed to the conceptualand analytical formulation of the consumption function under ...

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