It is well known that human preferences in decisions under risk do not always complies with expected utility theory (EUT). In fact, there are several effects that are inconsistent with basic tenets of EUT. Alternative theories have been proposed and perhaps the most well studied is Prospect Theory (PT). Recent work showed experimental results that support the idea that financial professionals m...

In a series of papers, F.H. Page presented existence results for optimal contract selection mechanisms for a number of principal-agent models [9, 12, 13]. These models involve both moral hazard and incomplete information aspects (in the sense of e.g. Harsanyi [6] and Meyerson [8]). A quite related existence result was also given by Page for the existence of an optimal Stackelberg strategy in a ...

This research addresses rational decision-making and coordination among antiair units whose mission is to defend a speciied territory from a number of attacking missiles. The automated units have to decide which missiles to attempt to intercept, given the characteristics of the threat, and given the other units' anticipated actions, in their attempt to minimize the expected overall damages to t...

In tiffs paper we present necessary and sufficient conditions Ibr existence and uniqueness of ordinal Nash outcomes. These outcomes are derived from the ordinal Nash solution a reinterpretation and an extension of the Nash bargaining solution that allows bargainers to have preference relations that are more general than expected utility. Out task is undertaken by the construction of a new notio...

This paper reports on an experimental study of the relationship between job capacity, job concentration, and market power in the context of an agent-based computational model of a labor market. Job capacity is measured by the ratio of potential job openings to potential work offers, and job concentration is measured by the ratio of work suppliers to employers. For each experimental treatment, w...