A simple framework for investigating the properties of policy games
AbstractThe paper extensively studies the static model of non-cooperative linear quadratic games in which a set of agents chooses their instruments strategically to minimize their linear quadratic criterion. We first derive the necessary and sufficient conditions for the existence of a Nash equilibrium as well as for multiple equilibria to arise. Furthermore, we study the general condition for policy neutrality and Pareto efficiency of the equilibrium by introducing a new concept of decisiveness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Communication, University of Teramo in its series wp.comunite with number 0059.
Date of creation: Dec 2009
Date of revision:
Contact details of provider:
Web page: http://wp.comunite.it/
Conflict of interest; Nash equilibrium existence; multiplicity; policy invariance; controllability; Pareto efficiency;
Find related papers by JEL classification:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D6 - Microeconomics - - Welfare Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-19 (All new papers)
- NEP-HAP-2009-12-19 (Economics of Happiness)
- NEP-LTV-2009-12-19 (Unemployment, Inequality & Poverty)
- NEP-SOC-2009-12-19 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bernholz, Peter, 1999. "The generalized Coase Theorem and separable individual preferences: an extension," European Journal of Political Economy, Elsevier, vol. 15(2), pages 331-335, June.
- Luca Anderlini & Leonardo Felli, 1999.
"Costly Bargaining and Renegotiation,"
CESifo Working Paper Series
213, CESifo Group Munich.
- Luca Anderlini & Leonardo Felli, 1998. "Costly bargaining and renegotiation," LSE Research Online Documents on Economics 3592, London School of Economics and Political Science, LSE Library.
- Anderlini, L. & Felli, L., 1999. "Costly bargaining and renegotiation," Discussion Paper Series In Economics And Econometrics 9910, Economics Division, School of Social Sciences, University of Southampton.
- Dixit, Avinash & Olson, Mancur, 2000. "Does voluntary participation undermine the Coase Theorem?," Journal of Public Economics, Elsevier, vol. 76(3), pages 309-335, June.
- Bernholz, Peter, 1997. "Property rights, contracts, cyclical social preferences and the Coase theorem: A synthesis," European Journal of Political Economy, Elsevier, vol. 13(3), pages 419-442, September.
- Sen, Amartya, 1970. "The Impossibility of a Paretian Liberal," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 152-57, Jan.-Feb..
- Luca Anderlini & Leonardo Felli, 2006.
"Transaction Costs and the Robustness of the Coase Theorem,"
Royal Economic Society, vol. 116(508), pages 223-245, 01.
- Luca Anderlini & Leonardo Felli, 2003. "Transaction Costs and the Robustness of the Coase Theorem," Working Papers gueconwpa~03-03-27, Georgetown University, Department of Economics.
- Luca Anderlini & Leonardo Felli, 2000. "Transaction costs and the robustness of the Coase Theorem," LSE Research Online Documents on Economics 3591, London School of Economics and Political Science, LSE Library.
- Nabil Al-Najjar, Luca Anderlini & Leonardo Felli, 2003. "Transaction Costs and the Robustness of the Coase Theorem," Working Papers gueconwpa~03-03-28, Georgetown University, Department of Economics.
- Luca Anderlini & Leonardo Felli, 2001. "Transaction Costs and the Robustness of the Coase Theorem," STICERD - Theoretical Economics Paper Series 409, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Gibbard, Allan, 1974. "A Pareto-consistent libertarian claim," Journal of Economic Theory, Elsevier, vol. 7(4), pages 388-410, April.
- Usher, Dan, 1998. "The Coase theorem is tautological, incoherent or wrong," Economics Letters, Elsevier, vol. 61(1), pages 3-11, October.
- Sen, Amartya K, 1976. "Liberty, Unanimity and Rights," Economica, London School of Economics and Political Science, vol. 43(171), pages 217-45, August.
- Wulf Gaerther & Prasanta K. Pattanaik & Kotaro Suzumura, 1991.
"Individual Rights Revisited,"
Discussion Paper Series
a238, Institute of Economic Research, Hitotsubashi University.
- Schmitz, Patrick W., 2001.
"The Coase Theorem, Private Information, and the Benefits of Not Assigning Property Rights,"
6929, University Library of Munich, Germany.
- Patrick Schmitz, 2001. "The Coase Theorem, Private Information, and the Benefits of Not Assigning Property Rights," European Journal of Law and Economics, Springer, vol. 11(1), pages 23-28, January.
- Bezalel Peleg, 1997. "Effectivity functions, game forms, games, and rights," Social Choice and Welfare, Springer, vol. 15(1), pages 67-80.
- Sen, Amartya Kumar, 1970. "The Impossibility of a Paretian Liberal," Scholarly Articles 3612779, Harvard University Department of Economics.
- Sen, Amartya, 1995. "Rationality and Social Choice," American Economic Review, American Economic Association, vol. 85(1), pages 1-24, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Di Bartolomeo).
If references are entirely missing, you can add them using this form.