Download or read book Strategic Complements Substitutes and Ambiguity written by Jürgen Eichberger and published by . This book was released on 2001 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Strategic Substitutes Complements and Ambiguity written by Sara le Roux and published by . This book was released on 2015 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: We report the results from a set of experiments conducted to test the effect of ambiguity on individual behaviour in games of strategic complements and strategic substitutes. We test whether subjects' perception of ambiguity differs when faced by a local opponent as opposed to a foreign one. Interestingly, though subjects often choose an ambiguity safe strategy (not part of a Nash equilibrium), we do not find much difference in the ambiguity levels when faced by foreign subjects.

Download or read book Strategic Complementarities and Endogenous Heterogeneity in Oligopolistic Markets written by Malgorzata Knauff and published by Presses univ. de Louvain. This book was released on 2006 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis consists of five chapters. The first of them contains introduction. Chapter 2 considers a broad class of two player symmetric games, which display a fundamental non-concavity when actions of both players are about to be the same. This implies that no symmetric equilibrium is possible. We distinguish different properties of the payoff functions, like strategic substitutes, complements and quasi-concavity, which are not necessarily imposed globally on the joint action space. A number of applications from industrial organization and applied microeconomics literature are provided. In Chapter 3 we generalize to the extent possible the known results for the case of games with one-dimensional action sets to the general case of games with action spaces that are complete lattices. We find that in the general case the scope for asymmetric equilibrium behavior is definitely broader than in the one-dimensional case, though still quite limited. Moreover, we investigate under which sufficient conditions asymmetric pure strategy Nash equilibria are always Pareto dominated by symmetric pure strategy Nash equilibria. In Chapter 4 we deal with the effects of market transparency on prices in the Bertrand duopoly model. We consider two types of strategic interaction between firms in an industry - strategic complementarities and substitutabilities. In the first case, the results are close to conventional wisdom, especially, when in the same time products are substitutes. Namely, equilibrium prices and profits are always decreasing in transparency level, while the consumer’s surplus is increasing. Considering price competition with strategic substitutes, an ambiguity in the direction of change of prices appears. This leads to ambiguity concerning equilibrium profits and surplus changes caused by increasing transparency. In Chapter 5 we provide general conditions for Cournot oligopoly with product differentiation to have monotonic reaction correspondences. We give a proof for the conditions stated by Vives (1999). Moreover we elaborate more general requirements. They allow for identifying increasing best responses even in case inverse demand is submodular, and similarly, decreasing best responses in case of supermodular inverse demand. Examples illustrating the scope of applicability of these results are provided.

Download or read book Strategic Ambiguity and Decision Making written by David Kelsey and published by . This book was released on 2017 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: We conducted a set of experiments to compare the effect of ambiguity in single person decisions and games. Our results suggest that ambiguity has a bigger impact in games than in ball and urn problems. We find that ambiguity has the opposite effect in games of strategic substitutes and complements. This confirms a theoretical prediction made by Eichberger and Kelsey (2002). In addition, we note that subjects' ambiguity-attitudes appear to be context dependent: ambiguity-loving in single person decisions and ambiguity-averse in games. This is consistent with the findings of Kelsey and le Roux (2015).

Download or read book Ambiguity and Social Interaction written by Jürgen Eichberger and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A decision-maker is said to have an ambiguous belief if it is not precise enough to be represented by a single probability distribution. The pervasive assumption in game theoretic models in economics is that players' beliefs are unambiguous. This paper argues, drawing on examples from economics and politics, that it may be illuminating, in instances, to model players as having ambiguous beliefs. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the effect of increasing (decreasing) equilibrium prices under Cournot (Bertrand) competition. In addition the effects of ambiguity on peace-making are examined. It is shown that ambiguity may select equilibria in coordination games with multiple equilibria. Some comparative statics results are derived for the impact of ambiguity in games with strategic complements.

Download or read book Granny Versus Game Theorist written by Jürgen Eichberger and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We report on an experiment in which subjects choose actions in strategic games with either strategic complements or substitutes against a granny, a game theorist or other subjects. The games are selected in order to test predictions on the comparative statics of equilibrium with respect to changes in strategic ambiguity. We find that subjects face higher ambiguity while playing against the granny than playing against the game theorist if we assume that subjects are ambiguity averse. Moreover, under the same assumption, subjects choose more secure actions in games more prone to ambiguity which is in line with the predictions.

Download or read book Advances in Decision Making Under Risk and Uncertainty written by Mohammed Abdellaoui and published by Springer Science & Business Media. This book was released on 2008-08-29 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: Whether we like it or not we all feel that the world is uncertain. From choosing a new technology to selecting a job, we rarely know in advance what outcome will result from our decisions. Unfortunately, the standard theory of choice under uncertainty developed in the early forties and fifties turns out to be too rigid to take many tricky issues of choice under uncertainty into account. The good news is that we have now moved away from the early descriptively inadequate modeling of behavior. This book brings the reader into contact with the accomplished progress in individual decision making through the most recent contributions to uncertainty modeling and behavioral decision making. It also introduces the reader into the many subtle issues to be resolved for rational choice under uncertainty.

Download or read book Dragon Slaying and Dyke Building How Does Ambiguity Affect Individual Behaviour written by Sara le Roux and published by . This book was released on 2013 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reports experiments conducted to test whether ambiguity affects individual behaviour in games of strategic complements and strategic substitutes. We study subject behaviour in the presence of ambiguity in order to ascertain whether subjects' perception of ambiguity differs between a local opponent and a foreign one. We find that an ambiguity safe strategy, which is not chosen in a Nash equilibrium, is often chosen by subjects. This gives a strong indication that ambiguity aversion influences subject behaviour in games.

Download or read book Uncertainty in Economic Theory written by Itzhak Gilboa and published by Psychology Press. This book was released on 2004 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This is the first collection to include chapters on this topic, and it can thus serve as an introduction to researchers who are new to the field as well as a graduate course textbook. With this goal in mind, the book contains survey introductions that are aimed at a graduate level student, and help explain the main ideas, and put them in perspective."--BOOK JACKET.

Download or read book Handbook of Economic Expectations written by Ruediger Bachmann and published by Elsevier. This book was released on 2022-11-04 with total page 876 pages. Available in PDF, EPUB and Kindle. Book excerpt: Handbook of Economic Expectations discusses the state-of-the-art in the collection, study and use of expectations data in economics, including the modelling of expectations formation and updating, as well as open questions and directions for future research. The book spans a broad range of fields, approaches and applications using data on subjective expectations that allows us to make progress on fundamental questions around the formation and updating of expectations by economic agents and their information sets. The information included will help us study heterogeneity and potential biases in expectations and analyze impacts on behavior and decision-making under uncertainty. Combines information about the creation of economic expectations and their theories, applications and likely futures Provides a comprehensive summary of economics expectations literature Explores empirical and theoretical dimensions of expectations and their relevance to a wide array of subfields in economics

Download or read book Journal of Economic Theory written by Karl Shell and published by . This book was released on 2002 with total page 1098 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Oxford Handbook of the Economics of Peace and Conflict written by Michelle R. Garfinkel and published by Oxford University Press. This book was released on 2012-02-02 with total page 888 pages. Available in PDF, EPUB and Kindle. Book excerpt: Social scientists and policy makers have long been interested in the causes and consequences of peace and conflict. This Handbook brings together contributions from leading scholars who take an economic perspective to study the topic. It includes thirty-three chapters and is divided into five parts: Correlates of Peace and Conflict; Consequences and Costs of Conflict; On the Mechanics of Conflict; Conflict and Peace in Economic Context; and Pathways to Peace. Taken together, they demonstrate not only how the tools of economics can be fruitfully used to advance our understanding of conflict, but how explicitly incorporating conflict into economic analysis can add substantively to our understanding of observed economic phenomena. Some chapters are largely empirical, identifying correlates of war and peace and quantifying many of the costs of conflict. Others are more theoretical, exploring a variety of mechanisms that lead to war or are more conducive to peace.

Download or read book International Governance and Risk Management written by Toshihiro Ihori and published by Springer. This book was released on 2019-07-23 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book the authors demonstrate how the economics of insurance, risk reduction, and damage control or limitation can be combined with concepts of collective choice and collective behavior to improve analysis of the escalating threats faced by alliances throughout the world. The book develops a theory of risk management as integrating likelihood of loss, magnitude of loss, and isolation from loss into a consolidated model. It extends existing concepts of individual risk management by a single person to decision theory for an entire country, managed by a government bureaucracy and lodged in a universe of overlapping alliances. The authors uncover a tendency, inherent in any bureaucracy for policy coordination in the realm of risk control to fail because of misunderstanding, disinterest, or perverse incentives. Understanding such incentives is essential to any sort of progress in risk management of proliferating national and global threats. Self-protection aims to reduce the chances of loss. This reduction may require the use, or threat or promise of use, of defensive military weapons or, depending on context, the use of offensive military weapons. Japan's constitution limits Japan to use of defensive measures only, even if Japan and the USA have formed a military alliance. This places Japan at an “economic corner solution” of providing only self-insurance. However, the Abe government intends to change the interpretation of the constitution so that Japan can provide a full range of self-protection as well as self-insurance. With the prospect of such constitutional change, this book becomes of special relevance to Japan's national security.

Download or read book Oligopoly Pricing written by Xavier Vives and published by MIT Press (MA). This book was released on 1999 with total page 446 pages. Available in PDF, EPUB and Kindle. Book excerpt: Applies a modern game-theoretic approach to develop a theory of oligopoly pricing. The text relates classic contributions to the field of modern game theory and discusses basic game-theoretic tools and equilibrium, paying particular attention to developments in the theory of supermodular games.

Download or read book Journal of Economic Theory written by Pennsylvania and published by . This book was released on 2001 with total page 1032 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Routledge Handbook of the Economics of European Integration written by Harald Badinger and published by Routledge. This book was released on 2015-10-05 with total page 537 pages. Available in PDF, EPUB and Kindle. Book excerpt: Routledge Handbook of the Economics of European Integration provides readers with a brief but comprehensive overview of topics related to the process of European integration in the post-World War II period. Its short chapters reflect the most up-to-date and concise research, written by a collective of experts on their own subjects. The aim of this book is twofold. Firstly, the text illustrates the broad and diverse range of issues associated with European integration, and lastly, the key approaches and findings are summarised. Since institutional integration in Europe is an ongoing process, with possibly frequent and sometimes rapid changes, the chapters are intended to focus on the key features of the economic analyses of these topics. A wide and diverse set of economic issues is of direct relevance for European integration. These topics cover various fields, ranging from the history of the European Economic and Monetary Union, EU Trade Policy and the stability of international trade, single market issues over fiscal, monetary and other policies, the crisis that faces the Euro area, and institutions such as EU Council of Ministers. Not surprisingly, many of these issues have also been analysed from a European perspective. This handbook is designed to provide students, researchers, the public and policy makers with ready and accessible knowledge of issues related to European integration and will provide the definitive overview of research in the area.

Download or read book Industrial Organization written by Lynne Pepall and published by John Wiley & Sons. This book was released on 2014-01-28 with total page 741 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pepall's Industrial Organization: Contemporary Theory and Empirical Applications, 5th Edition offers an accessible text in which topics are organized in a manner that motivates and facilitates progression from one chapter to the next. It serves as a complete, but concise, introduction to modern industrial economics. The text uniquely uses the tools of game theory, information economics, contracting issues, and practical examples to examine multiple facets of industrial organization. The fifth edition is more broadly accessible, balancing the tension between making modern industrial analysis accessible while also presenting the formal abstract modeling that gives the analysis its power. The more overtly mathematical content is presented in the Contemporary Industrial Organization text (aimed at the top tier universities) while this Fifth Edition will less mathematical (aimed at a wider range of four-year colleges and state universities.