Safe Pareto improvements for delegated game playing

Playing Safe

We consider two-player games over graphs and give tight bounds on the memory size of strategies ensuring safety conditions. More specifically, we show that the minimal number of memory states of a strategy ensuring a safety condition is given by the size of the maximal antichain of left quotients with respect to language inclusion. This result holds for all safety conditions without any regular...

Pareto Improvements from Lexus Lanes

This paper shows that a judiciously designed toll applied to a portion of the lanes of a highway can be a Pareto improvement even before the revenue is spent. I achieve this new result by extending a standard dynamic congestion model to reflect an important additional traffic externality which transportation engineers have recently identified: additional traffic does not simply increase travel ...

Playing It Safe

A Dynamic Game under Ambiguity: Contracting for Delegated Experimentation

Conventional (single-prior) Bayesian games of incomplete information are limited in their ability to capture the extent of informational asymmetry. In particular, they are not capable of representing complete ignorance of an uninformed player about an unknown parameter of the environment. Using a framework of contracting for delegated experimentation, we formulate and analyze a dynamic game of ...

The Hidden Advantage of Delegation: Pareto-improvements in a Gift-exchange Game

2358 Many employment relationships are characterized by incomplete labor contracts in which the worker’s performance is not always enforceable. The firm’s profits depend (in part) on workers’ behavior. Thus, some combination of control and incentive devices is needed to get the best performance. The standard approach is to control the self-interested worker to the greatest extent possible, in o...