In this paper we introduce a strategic form model in which cooperation structures and divisions of the payoffs are determined simultaneously. We analyze the cooperation structures and payoff divisions that result according to Nash equilibria, strong Nash equilibria, and coalition proof Nash equilibria. We find that no cycle will be formed if a player claims a positive amount for the formation o...

We show that the institution of money promotes a transition from small to largescale economic interactions, from low to high-value exchange. In an experiment, subjects chose to play an “intertemporal cooperation game” either in low-value partnerships or in high-value groups of strangers. Theoretically, a monetary system was unnecessary to attain the efficient, large-scale cooperation outcome. E...

Ð International cooperation over the major rivers in South Asia has recently become much closer. Five agreements, signed in 1996 and 1997 against a background of greater regional economic and nongovernmental contact, could facilitate signi®cant progress to mitigate ̄ooding and drought, to provide a basis for greater regional cooperation, and to sustain irrigation expansion and industrial develop...

We show that monetary exchange facilitates the transition from small to large-scale economic interactions. In an experiment, subjects chose to play an “intertemporal cooperation game” either in partnerships or in groups of strangers where payoffs could be higher. Theoretically, a norm of mutual support is sufficient to maximize efficiency through large-scale cooperation. Empirically, absent a m...

Aggregated phenomena in social sciences and economics are highly dependent on the way individuals interact. To help understanding the interplay between socio-economic activities and underlying social networks, this paper studies a sequential prisoner’s dilemma with binary choice. It proposes an analytical and computational insight about the role of endogenous networks in emergence and sustainab...

Cooperation among children can appear haphazard, a finding often attributed to deficient social skills and moral reasoning. Here we took a game theoretical approach to understand development of cooperation, using the prisoner’s dilemma to test an alternative source of age-differences in cooperative behavior—how children and adults represent the numerical magnitudes of payoffs for cooperating ve...

Introduction Economic integration and cooperation in Asia has traditionally been more market-driven and institution-lite. The Asian Financial Crisis (AFC) in 1997/98 and the Great Recession in 2008 changed that. As the number of Free Trade Agreement (FTA) in Asia increases, intraregional trade has intensified and it continues to grow. In the financial side, the cross-border holding of financial...