This paper studies the stability of communication protocols that deal with transmission errors. We consider a coordination game between an informed sender and an uninformed decision maker, the receiver, who communicate over a noisy channel. The sender’s strategy, called a code, maps states of nature to signals. The receiver’s best response is to decode the received channel output as the state w...

the current research aims to consider the importance of decision maker level of analysis in the study of foreign policy. this capability is created in regard to the role of man in foreign policy and international relations theories. however, the main research question is whether the decision maker level of analysis will be the theoretical support for the analysis of foreign policy and what the ...

This paper studies the effects of vertical integration on innovation in the chipset and smartphone industries. I formulate and estimate a dynamic structural model of the upstream chipset maker Qualcomm and downstream smartphone handset makers. The two sides make dynamic investment decisions and negotiate chipset prices via Nash bargaining. Using the estimates, I simulate market outcomes should ...

In the sequential decision making task known as the best choice problem, n items are presented in a random order one at a time. After each item, the decision maker can determine only their relative ranks. The goal of decision maker is to select the best of all n items without the possibility of recalling previously observed items. Many important business decisions such as choosing a venture par...

I characterize joint choice behavior generated by the pure strategy Nash equilibrium solution concept by an extension of the Congruence Axiom of Richter(1966) to multiple agents. At the same time, I relax the “complete domain” assumption of Yanovskaya(1980) and Sprumont(2000) to “closed domain.” Without any restrictions on the domain of the choice correspondence, determining pure strategy Nash ...

We use a stochastic frontier approach to study the effects of political and regulatory institutions on aggregate productivity in 39 countries from 1975 to 1990. We show that technical efficiency is positively related to policies supporting laissez-faire and political structures that promote policy stability. Moreover, models of technical efficiency incorporating both measures perform better tha...

In adversarial situations, the input data to an algorithm could be manipulated to make the algorithm produce erroneous output or to make a wrong decision. The paper presents a formal definition and a model of algorithm manipulation from a game-theoretic point of view. Algorithm manipulation is viewed as a game between a decision maker and an adversary. The decision maker runs an algorithm to ma...

We consider an inventory competition game between two firms. The question we address is this: If players do not know the opponent’s action and opponent’s utility function can they learn to play the Nash policy in a repeated game by observing their own sales? In this work it is proven that by means of Maximum A Posteriori (MAP) estimation, players can learn the Nash policy. It is proven that pla...

How Does Imperfect Competition in the Labor Market Affect Unemployment Policies? We consider a continuum of workers ranked according to their abilities to acquire education and two firms with different technologies that imperfectly compete in wages to attract these workers. Once employed, each worker bears an education cost proportional to his/her initial ability, this cost being higher in the ...