Related papers: Peace through bribing
High-stakes auctions are often preceded by nonbinding communication between bidders and the seller. Motivated by these practices, this paper examines a two-period model in which two bidders send private cheap talk messages to the seller…
In this paper, we propose a bilateral peer-to-peer (P2P) energy trading scheme under single-contract and multi-contract market setups, both as an assignment game, and a special class of coalitional games. {The proposed market formulation…
In stable matching, one must find a matching between two sets of agents, commonly men and women, or job applicants and job positions. Each agent has a preference ordering over who they want to be matched with. Moreover a matching is said to…
We study the problem of fair online resource allocation via non-monetary mechanisms, where multiple agents repeatedly share a resource without monetary transfers. Previous work has shown that every agent can guarantee $1/2$ of their ideal…
In a satisficing equilibrium each agent $i$ plays one of her top $k_i$ actions in response to the actions of the other agents. Our concept unifies models of bounded rationality and yields predictions that differ from canonical solution…
This paper studies a two-player game in which the players face uncertainty regarding the nature of their partner. In this variation of the standard Prisoner's Dilemma, players may encounter an 'honest' type who always cooperates.…
In this paper, we investigate the equilibria and their stability in an asymmetric duopoly model of Kopel by using several tools based on symbolic computations. We explore the possible positions of the equilibria in Kopel's model. We discuss…
Objectives: Discussions of fairness in criminal justice risk assessments typically lack conceptual precision. Rhetoric too often substitutes for careful analysis. In this paper, we seek to clarify the tradeoffs between different kinds of…
We study a model of vendors competing to sell a homogeneous product to customers spread evenly along a circular city. This model is based on Hotelling's celebrated paper in 1929. Our aim in this paper is to present a necessary and…
This paper studies lying in a novel context. Previous work has focused on situations in which people are either fully aware of the economic consequences of all available actions (e.g., die-under-cup paradigm), or they are uncertain, but…
Pro-social punishment is a key driver of harmonious and stable society. However, this institution is vulnerable to corruption since law-violators can avoid sanctioning by paying bribes to corrupt law-enforcers. Consequently, to understand…
We propose a novel model for refugee housing respecting the preferences of the accepting community and refugees themselves. In particular, we are given a topology representing the local community, a set of inhabitants occupying some…
Historical episodes such as the World War I "live-and-let-live" system and the Christmas Truce of 1914 demonstrate that opposing military units can establish spontaneous, local cooperation even in extreme conflict environments. Such…
In criminal justice risk forecasting, one can prove that it is impossible to optimize accuracy and fairness at the same time. One can also prove that it is impossible optimize at once all of the usual group definitions of fairness. In the…
The stability of money value is an important requisite for a functioning economy, yet it critically depends on the actions of participants in the market themselves. Here we model the value of money as a dynamical variable that results from…
Consider a multi-class preemptive-resume $M/D/1$ queueing system that supports advance reservations (AR). In this system, strategic customers must decide whether to reserve a server in advance (thereby gaining higher priority) or avoid AR.…
The Generalized Second Price (GSP) auction used typically to model sponsored search auctions does not include the notion of budget constraints, which is present in practice. Motivated by this, we introduce the different variants of GSP…
The all-pay auction, a classic competitive model, is widely applied in scenarios such as political elections, sports competitions, and research and development, where all participants pay their bids regardless of winning or losing. However,…
We consider a two-player game of war of attrition under complete information. It is well-known that this class of games admits equilibria in pure, as well as mixed strategies, and much of the literature has focused on the latter. We show…
We study the modelling and valuation of surrender and other behavioural options in life insurance and pension. We place ourselves in between the two extremes of completely arbitrary intervention and optimal intervention by the policyholder.…