An essential element of goal-directed decision-making in social contexts is that agents' actions may be mutually interdependent. However, the most well-developed approaches to such strategic interactions, based on the Nash equilibrium concept in game theory, are sometimes too broad and at other times 'overlook' good solutions to fundamental social dilemmas and coordination problems. The authors...

If one abstracts from specially organized markets like stock or commodity exchanges, (international) trade relies on bargaining between the interested parties. Whereas earlier the results of bargaining were seen as unpredictable or determined by an at most vaguely deened concept of (relative) bargaining power, it is simply a eld of application in view of game theory. Our discussion tries to ela...

We study bargaining games between suppliers and manufacturers in a network context. Agents wish to enter into contracts in order to generate surplus which then must be divided among the participants. Potential contracts and their surplus are represented by weighted edges in our bipartite network. Each agent in the market is additionally limited by a capacity representing the number of contracts...

Standard contract theory assumes that the principal holds all of the bargaining power. By implementing alternating o¤er and strategic delay, we transform the one-shot contracts design game into the in…nite-horizon contracts bargaining game. The uninformed principal and the informed agent bargain over multiple dimensions. Our paper presents the following new results. When the di¤erence between t...

As an attempt to fill the gap between psychological studies on negotiations and game-theoretical studies on bargaining, I provide a new conception, that of the concession-making strategy. This type of strategy is formally defined as a pattern of consecutive concessions in bargaining. Because such a pattern is a product of decision makers' cognitive and motivational processes, this framework is ...

Shapley’s impossibility result indicates that the two-person bargaining problem has no non-trivial ordinal solution with the traditional game-theoretic bargaining model. Although the result is no longer true for bargaining problems with more than two agents, none of the well known bargaining solutions are ordinal. Searching for meaningful ordinal solutions, especially for the bilateral bargaini...

Pricing and advertising are two important marketing strategies in the supply chain management which lead to customer demand’s increase and therefore higher profit for members of supply chains. This paper considers advertising, and pricing decisions simultaneously for a three-level supply chain with one supplier, one manufacturer and one retailer. The amount of market demand is influenced ...

We investigate international negotiations on CO2 emissions reduction in the Kyoto Protocol by non-cooperative multilateral bargaining theory. The negotiation model has two phases, (i) allocating emission reductions to countries and (ii) international emissions trading. Anticipating the competitive equilibrium of emissions trading, each country evaluates an agreement of reduction commitments. We...

This sequel paper analyzes other selected methodologies and applications from the theory of continuous-time (real) option games – the combination of real options and game theory. In the first paper (Dias & Teixeira, 2003), we analyzed preemption and collusion models of duopoly under uncertainty. In this second paper we focus on models of oligopoly under uncertainty, war of attrition under uncer...

Game-theoretic models of bargaining are typically based on the assumption that players have perfect rationality and that they always play an equilibrium strategy. In contrast, research in experimental economics shows that in bargaining between human subjects, participants do not always play the equilibrium strategy. Such agents are said to be boundedly rational. In playing a game against a boun...