Savage’s framework of subjective preference among acts provides a paradigmatic derivation of rational subjective probabilities within a more general theory of rational decisions. The system is based on a set of possible states of the world, and on acts, which are functions that assign to each state a consequence. The representation theorem states that the given preference between acts is determ...

We define and investigate a structure incorporating what is true, what is known and what is believed by a rational agent in models of the S4.2 logic of knowledge. The notion of KBR-structures introduced, provides a fine-grained modal analysis of an agent’s epistemic state, actually one that differentiates knowledge from belief and accounts for an agent without full introspective power (concerni...

To what extent will an industry in which mergers are feasible tend toward monopoly? We analyze this question using a dynamic dominant-firm model with rational agents, endogenous mergers, and constant returns to scale production. We find that long-run industry concentration depends upon the initial concentration. A monopolistic industry will remain monopolized and a perfectly competitive industr...

This paper develops a sequential random matching model of asset trading to analyze how the extent of information about an asset that is available in the market can affect its tradeability. Liquidity traders are rational agents with higher impatience, which make optimal intertemporal consumption decisions given the trading constraints. Information asymmetries result in unexecuted trades. Agents ...

We introduce a new mean field kinetic model for systems of rational agents interacting in a game-theoretical framework. This model is inspired from noncooperative anonymous games with a continuum of players and Mean-Field Games. The large time behavior of the system is given by a macroscopic closure with a Nash equilibrium serving as the local thermodynamic equilibrium. An application of the pr...

Although the change of beliefs in the face of new information has been widely studied with some success, the revision of other mental states has received little attention from the theoretical perspective. In particular, intentions are widely recognised as being a key attitude for rational agents, and while several formal theories of intention have been proposed in the literature, the logic of i...

This paper analyzes automated distributive negotiation where agents have firm deadlines that are private information. The agents are allowed to make and accept offers in any order in continuous time. We show that the only sequential equilibrium outcome is one where the agents walt until the first deadline, at which point that agent concedes everything to the other. This holds for pure and mixed...

This paper is motivated by analysing a Google selfdriving car accident, i.e., the car hit a bus, with the framework and the tools of strategic reasoning by model checking. First of all, we find that existing ATL model checking may find a solution to the accident with irrational joint strategy of the bus and the car. This leads to a restriction of treating both the bus and the car as rational ag...

We consider general economies in which rational agents interact locally. The local aspect of the interactions is designed to represent in a simple abstract way social interactions, that is, socioeconomic environments in which markets do not mediate all of agents’ choices, which might be in part determined, for instance, by family, peer group, or ethnic group effects. We study static as well as ...

When it comes to belief dynamics Y how a rational agent ought to change her full-beliefs after learning something new Y doxastic conservatism seems to have a lot going for it. Information is not gratuitous, the slogan goes, and so changes in view should always be minimal changes in view. This is the core of conservatism, and looks like just the kind of constraint that rationality imposes on bel...