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A Mechanism for Inducing Cooperation in Non-Cooperative Environments: Theory and Applications

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Author Info
Christopher J. Ellis () (University of Oregon Economics Department)
Anne van den Nouweland () (University of Oregon Economics Department)
Abstract

We construct a market based mechanism that induces players in a non-cooperative game to make the same choices as characterize cooperation. We then argue that this mechanism is applicable to a wide range of economic questions and illustrate this claim using the problems of "The Tragedy of the Commons" and "R&D Spillovers in Duopoly".

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File URL: http://economics.uoregon.edu/papers/UO-2000-2_Ellis_Coop_Mechanism.pdf
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Publisher Info
Paper provided by University of Oregon Economics Department in its series University of Oregon Economics Department Working Papers with number 2000-2.

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Length: 27
Date of creation: 01 Feb 2000
Date of revision: 01 Feb 2000
Handle: RePEc:ore:uoecwp:2000-2

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Related research
Keywords: Cooperation Externalities Spillovers Efficiency.

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D62 - Microeconomics - - Welfare Economics - - - Externalities
H40 - Public Economics - - Publicly Provided Goods - - - General

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  1. Cornes, Richard & Mason, Charles F & Sandler, Todd, 1986. "The Commons and the Optimal Number of Firms," The Quarterly Journal of Economics, MIT Press, vol. 101(3), pages 641-46, August. [Downloadable!] (restricted)
  2. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-37, December. [Downloadable!] (restricted)
  3. Roemer, J.E., 1991. "Would Economic Democracy Decrease the Amount of Public Bads?," Papers 376, California Davis - Institute of Governmental Affairs.
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  4. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May. [Downloadable!] (restricted)
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