Game Mining: How to Make Money from those about to Play a Game
AbstractIt is known that a player in a noncooperative game can benefit by publicly re- stricting their possible moves before start of play. We show that, more generally, a player may benefit by publicly committing to pay an external party an amount that is contingent on the game's outcome. We explore what happens when external parties (who we call game miners) discover this fact and seek to profit from it by entering an outcome-contingent contract with the players. We analyze various bargaining games between miners and players for determining such an outcome- contingent contract. We establish restrictions on the strategic settings in which a game miner can profit, and bounds on the game miner's profit given various structured bargaining games. These bargaining games include playing the players against one another, as well as allowing the players to pay the miner(s) for exclu- sivity and first-mover advantage. We also establish that when all players can enter contracts with miners, to guarantee the existence of equilibria it is necessary to assume that players can randomize over the contracts they make.
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Bibliographic InfoPaper provided by American University, Department of Economics in its series Working Papers with number 2009-10.
Date of creation: Aug 2009
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-05 (All new papers)
- NEP-CBE-2009-12-05 (Cognitive & Behavioural Economics)
- NEP-GTH-2009-12-05 (Game Theory)
- NEP-HPE-2009-12-05 (History & Philosophy of Economics)
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