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

Author

Listed:
  • 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".

Suggested Citation

  • Christopher J. Ellis & Anne van den Nouweland, 2000. "A Mechanism for Inducing Cooperation in Non-Cooperative Environments: Theory and Applications," University of Oregon Economics Department Working Papers 2000-2, University of Oregon Economics Department, revised 01 Feb 2000.
    • Handle: RePEc:ore:uoecwp:2000-2
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    File URL: http://economics.uoregon.edu/papers/UO-2000-2_Ellis_Coop_Mechanism.pdf
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    Cited by:

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    2. Rahmi İlkılıç, 2011. "Networks of common property resources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 47(1), pages 105-134, May.
    3. Kiriti Kanjilal & Félix Muñoz-García, 2021. "Common Pool Resources with Endogenous Equity Shares," Strategic Behavior and the Environment, now publishers, vol. 9(1-2), pages 103-143, July.
    4. Kanjilal Kiriti & Muñoz-García Félix, 2020. "Endogenous Equity Shares in Cournot Competition: Welfare Analysis and Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.

    More about this item

    Keywords

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    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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