This paper presents a new extension of the Rubinstein-St̊ahl bargaining model to the case with n players, called sequential share bargaining. The bargaining protocol is natural and has as its main feature that the players’ shares in the cake are determined sequentially. The bargaining protocol requires unanimous agreement for proposals to be implemented. Unlike all existing bargaining protocols ...

This paper presents a noncooperative dynamic n-player coalitional bargaining game with transferable utilities, which includes Chatterjee et al.’s (1993) fixed-order-proposer model and Okada’s (1996) random-proposer model as two extreme special cases. In this model, proposers are selected by protocols based on partitions of player sets. This paper provides conditions for the subgame efficiency, ...

This paper derives the properties of the discount rate that should be applied to a public-sector project when the affected population has heterogeneous degrees of impatience. We show that, for any distribution of discount rates, the social discount rate has the following properties: it decreases over time, it is lower than the average of the discount rates in the population and, it converges to...

We propose a new item-ranking method that is reliable and can efficiently identify high-quality items from among a set of items in a given category using their review-scores which were rated and posted by users. Typical ranking methods rely only on either the number of reviews or the average review score. Some of them discount outdated ratings by using a temporal-decay function to make a fair c...

For 5500 North American hedge funds following 11 different strategies, we analyse the stand-alone performance of these strategies using a stochastic discount factor approach. Employing same data, then consider diversification benefits each fund strategy when combined with portfolio US equities and bonds. We compute out-of-sample Black-Litterman portfolios, Bayes-Stein, higher moments, simulatio...

This research compared delay discounting in mothers and their children (12 or 13 years of age). Half of the mothers (n=15) were current smokers, and the other half (n=15) reported never smoking. Considerable research has shown that adult smokers discount more by delay than nonsmokers, and that parent smoking is a risk factor for adolescent smoking. Thus, it was hypothesized that the mothers who...

We present a novel structural estimation procedure that is based on simulating expectation errors; we refer to it as Synthetic Residual Estimation (SRE). We develop variants of the basic procedure that allow us to account for measurement error in consumption and for heterogeneity in intertemporal allocation parameters. An investigation of the small sample properties of the SRE estimator indicat...

I consider cooperation situations where players have network relations. Networks evolve according to a stationary transition probability matrix and at each moment in time players receive payoffs from a stationary allocation rule. Players discount the future by a common factor. The pair formed by an allocation rule and a transition probability matrix is called expected fair if for every link in ...

We analyze the extent to which efficient trade is possible in an ongoing relationship between impatient agents with hidden valuations (i.i.d. over time), restricting attention to equilibria that satisfy ex post incentive constraints in each period. With ex ante budget balance, efficient trade can be supported in each period if the discount factor is at least one half. In contrast, when the budg...

Joint economic lot sizing (JELS) addresses integrated inventory models in a supply chain. Most of the studies in this field either do not consider the role of the transportation cost in their analysis or consider transportation cost as a fixed part of the ordering costs. In this article, a model is developed to analyze an incremental quantity discount in transportation cost. Appropriate equatio...