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Cooperation and Institution in Games

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  • Akira Okada

Abstract

type="main"> Based on recent developments in non-cooperative coalitional bargaining theory, I review game theoretical analyses of cooperation and institution. First, I present basic results of the random-proposer model and apply them to the problem of involuntary unemployment in a labour market. I discuss extensions to cooperative games with externalities and incomplete information. Next, I consider the enforceability of an agreement as an institutional foundation of cooperation. I re-examine the contractarian approach to the problem of cooperation from the viewpoint that individuals may voluntarily create an enforcement institution.

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  • Akira Okada, 2015. "Cooperation and Institution in Games," The Japanese Economic Review, Japanese Economic Association, vol. 66(1), pages 1-32, March.
    • Handle: RePEc:bla:jecrev:v:66:y:2015:i:1:p:1-32
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    Cited by:

    1. OKADA, Akira & 岡田, 章, 2014. "International Cooperation and Institution Formation: A Game Theoretic Perspective," Discussion Papers 2014-17, Graduate School of Economics, Hitotsubashi University.

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact

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