Previous allocation rules for network games, such as the Myerson Value, implicitly or explicitly take the network structure as fixed. In many situations, however, the network structure can be altered by players. This means that the value of alternative network structures (not just sub-networks) can and should influence the allocation of value among players on any given network structure. I pres...

We study coalitional one-deviation principle in a framework à la Chwe (1994). The principle requires that an active coalition or any of its subcoalition will not benefit from a single deviation to a strategy that specifies, for each history of coalitional moves, an active coalition and its move. A strategy meeting the one-deviation property is characterized. Moreover, it is shown to exist. Fina...

This paper proposes new concepts of strong and coalition-proof correlated equilibria where agents form coalitions at the interim stage and share information about their recommendations in a credible way. When players deviate at the interim stage, coalition-proof correlated equilibria may fail to exist for two-player games. However, coalitionproof correlated equilibria always exist in dominance-...

Optimal communication to a group often entails a trade-off between precision of information conveyed and common understanding (or approximate common knowledge) of the information within the group. We argue that an understanding of this trade-off is central in many contexts, including central bank communication and the design of accounting standards, as well as understanding the design of langua...

We explore the scientific potential of virtual worlds for experimental economists. In particular, we report the results of a series of virtual world experiments designed to examine the suitability of (a) users as subjects and (b) the computer interface as an experimental platform. Formal results and informal observations from the sessions are discussed in terms of the methodological opportuniti...

We provide comparable algorithms for the Dekel-Fudenberg procedure, iterated admissibility and proper rationalizability by means of the concepts of preference restrictions and likelihood orderings. We apply the algorithms for comparing iterated admissibility and proper rationalizability, and provide a sufficient condition under which iterated admissibility does not rule out properly rationaliza...

We offer a detailed examination of a broad class of 2 × 2 matrix games as a first step toward considering measures of resource distribution and efficiency of outcomes. In the present essay, only noncooperative equilibria and entropic outcomes are considered, and a crude measure of efficiency employed. Other solution concepts and the formal construction of an efficiency index will be addressed i...

Galeotti et al. (2006, [2]) show that all minimal networks can be strict Nash in two-way flow models with full parameter heterogeneity while only inward pointing stars and the empty network can be strict Nash in the homogeneous parameter model of Bala and Goyal (2000, [1]). In this note we show that the introduction of partner heterogeneity plays a major role in substantially increasing the set...

We propose an allocation rule that takes into account the importance of players and their links and characterizes it for a fixed network. Unlike previous rules, our characterization does not require component additivity. Next, we extend it to flexible networks à la Jackson (2005). Finally, we provide a comparison with other fixed (network Myerson and Position value) and flexible network (player...

Domains of generalized single-peaked preferences are classified in terms of the extent to which they enable well-behaved strategy-proof social choice. Generalizing the Gibbard-Satterthwaite Theorem, we characterize the domains that admit non-dictatorial strategy-proof social choice functions. We also provide characterizations of the domains that enable locally non-dictatorial, anonymous, and ne...