I have posted a new working paper with Subhadip Chakrabarti and Emiliya Lazarova (Both from Queen’s University Belfast) on the game theory page. This paper addresses the question of how groups of decision makers cooperate and make decisions. To that end we modify the standard Nash equilibrium concept to capture such cooperative behavior. Existence theorems…
Stiglitz in Glasgow
I just returned from the meetings of the European Economic Association (EEA) in Glasgow. It was a good opportunity to assess the state of economics (as a science) after the collapse of the global financial system in 2008. As remarked by Phil Mirowski in a recent article, the state of economics is not very good…
Network formation paper posted
A new version of my paper with Sudipta Sarangi on belief-based behavior in network formation with communication costs has been posted. The old version is retained as well for more examples and discussion. Please visit the network formation page.
Failure in the global relational economy
Yesterday, news broke that the SEC is accusing Goldman-Sachs of exploiting its middleman position for fraudulent purposes. This case is a striking example of what failures the relational or network structure of the global economy can cause without proper regulation and governance. In fact, this case has several important implications for our understanding of the global economy.
New page on game theory and applications
I just added a new page to this web site with recent working papers on game theory and its applications. I posted two papers, one with Dimitrios Diamantaras on using ambiguity equilibrium concepts to understand social opinion formation and one with Zhengzheng Pan on a dynamic, boundedly rational learning process in a setting where interaction…
New page on network formation
I have added a new page on my research on network formation. Two papers are currently posted there. First, a paper with Sudipta Sarangi on the modeling of trust in network formation. Second, an unpublished working paper from 2000 on evolutionary formation of interaction if players play a simple game in a spatial setting.