In much of the world and through much of history, private mechanisms--such as long-term relationships, arbitration, social networks to disseminate information and norms to impose sanctions, and for-profit enforcement services--have grown up in place of formal, state-governed institutions. Even in countries with strong legal systems, many of these mechanisms continue under the shadow of the law. Numerous case studies and empirical investigations have demonstrated the variety, importance, and merits, and drawbacks of such institutions.
This book builds on these studies and constructs a toolkit of theoretical models to analyze them. The models shed new conceptual light on the different modes of governance, and deepen our understanding of the interaction of the alternative institutions with each other and with the government's law. For example, one model explains the limit on the size of social networks and illuminates problems in the transition to more formal legal systems as economies grow beyond this limit. Other models explain why for-profit enforcement is inefficient. The models also help us understand why state law dovetails with some non-state institutions and collides with others. This can help less-developed countries and transition economies devise better processes for the introduction or reform of their formal legal systems.
The authors first discuss prerequisite concepts and tools from basic game theory, industrial organization, and real options analysis, and then present the new approach in discrete time and later in continuous time. Their presentation of continuous-time option games is the first systematic coverage of the topic and fills a significant gap in the existing literature.
Competitive Strategy provides a rigorous yet pragmatic and intuitive approach to strategy formulation. It synthesizes research in the areas of strategy, economics, and finance in a way that is accessible to readers not necessarily expert in the various fields involved.
This new approach to investment recognizes the option value of waiting for better (but never complete) information. It exploits an analogy with the theory of options in financial markets, which permits a much richer dynamic framework than was possible with the traditional theory of investment. The authors present the new theory in a clear and systematic way, and consolidate, synthesize, and extend the various strands of research that have come out of the theory. Their book shows the importance of the theory for understanding investment behavior of firms; develops the implications of this theory for industry dynamics and for government policy concerning investment; and shows how the theory can be applied to specific industries and to a wide variety of business problems.
In scenarios that range from the optimistic to the guardedly gloomy, these thinkers consider such topics as the transformation of work and wages, the continuing increase in inequality, the economic rise of China and India, the endlessly repeating cycle of crisis and (projected) recovery, the benefits of technology, the economic consequences of political extremism, and the long-range effects of climate change. For example, 2013 Nobelist Robert Shiller provides an innovative view of future risk management methods using information technology; and Martin Weitzman raises the intriguing but alarming possibility of using geoengineering techniques to mitigate the inevitable effects of climate change.
Contributors Daron Acemoglu, Angus Deaton, Avinash K. Dixit, Edward L. Glaeser, Andreu Mas-Colell, John E. Roemer, Alvin E. Roth, Robert J. Shiller, Robert M. Solow, Martin L. Weitzman
Intel, Nintendo, American Express, NutraSweet, American Airlines, and dozens of other companies have been using the strategies of co-opetition to change the game of business to their benefit. Formulating strategies based on game theory, authors Brandenburger and Nalebuff created a book that's insightful and instructive for managers eager to move their companies into a new mind set.
From the Trade Paperback edition.
As every parent knows, kids are surprisingly clever negotiators. But how can we avoid those all-too-familiar wails of “That’s not fair!” and “You can’t make me!”? In The Game Theorist’s Guide to Parenting, the award-winning journalist and father of five Paul Raeburn and the game theorist Kevin Zollman pair up to highlight tactics from the worlds of economics and business that can help parents break the endless cycle of quarrels and ineffective solutions. Raeburn and Zollman show that some of the same strategies successfully applied to big business deals and politics—such as the Prisoner’s Dilemma and the Ultimatum Game—can be used to solve such titanic, age-old parenting problems as dividing up toys, keeping the peace on long car rides, and sticking to homework routines.
Raeburn and Zollman open each chapter with a common parenting dilemma. Then they show how carefully concocted schemes involving bargains and fair incentives can save the day. Through smart case studies of game theory in action, Raeburn and Zollman reveal how parents and children devise strategies, where those strategies go wrong, and what we can do to help raise happy and savvy kids while keeping the rest of the family happy too.
Delightfully witty, refreshingly irreverent, and just a bit Machiavellian, The Game Theorist’s Guide to Parenting looks past the fads to offer advice you can put into action today.
Seth Goldman and Barry Nalebuff began Honest Tea fifteen years ago with little more than a tea leaf of an idea and a passion to offer organic, freshly brewed, lightly sweetened bottled tea. Today Honest Tea is a rapidly expanding national brand sold in more than 100,0000 grocery stores, restaurants, convenience stores and drugstores across the country. The brand has flourished as American consumers move toward healthier and greener lifestyles.
Drawing on the experiences of top social scientists working in developing countries, this book delves into failed projects and helps guide practitioners as they embark on their research. From experimental design and implementation to analysis and partnership agreements, Karlan and Appel show that there are important lessons to be learned from failures at every stage. They describe five common categories of failures, review six case studies in detail, and conclude with some reflections on best (and worst) practices for designing and running field projects, with an emphasis on randomized controlled trials. There is much to be gained from investigating what has previously not worked, from misunderstandings by staff to errors in data collection.
Cracking open the taboo subject of the stumbles that can take place in the implementation of research studies, Failing in the Field is a valuable "how-not-to" handbook for conducting fieldwork and running randomized controlled trials in development settings.
Game Theory means rigorous strategic thinking. It is based on the idea that everyone acts competitively and in his own best interest. With the help of mathematical models, it is possible to anticipate the actions of others in nearly all life's enterprises. This book includes down-to-earth examples and solutions, as well as charts and illustrations designed to help teach the concept. In The Complete Idiot's Guide® to Game Theory, Dr. Edward C. Rosenthal makes it easy to understand game theory with insights into:
? The history of the disciple made popular by John Nash, the mathematician dramatized in the film A Beautiful Mind
? The role of social behavior and psychology in this amazing discipline
? How important game theory has become in our society and why
This book was partly motivated by requests to identify and develop real option models for R&D in telecommunications, petroleum technology and biotechnology. Nine new models cover information and implementation costs, analytical solutions for mean reverting, or fat tailed revenues, endogenous learning and exogenous and experiential shocks, American sequential options, and innovator advantages. Four new applications include forward start development options, exploration options, innovation with information costs, and innovator's real values with changing market share. R&D directors and researchers will find several uses for these models:general R&D planningevaluating test informationnew product development timingrisk sharingindustry strategy and regulationA practical guide to how organizations can use Real Option techniques to effectively value research and development by companiesProvides a rigorous theoretical underpinning of the use of Real Option techniquesReal Options applications are orientated around the economies of North America, Europe and Asia, for an international perspective
The theory with which this volume is concerned is that of science. In very general terms it may be defined as a system of hypotheses, one following from another, which permits the reader to derive from known facts and predictions of other facts. If the knowledge of the fact which we predict is important for us, in the sense that it permits us to achieve better the objectives we pursue, the theory may have a practical value. This book is therefore not only a contribution to the analysis of expectations but also an introduction to a number of selected topics in economic theory.
S. A. Ozga was born in Poland and received his first doctorate in economics in Warsaw. He obtained then a Ph.D. degree at the University of London and joined the staff of the London School of Economics, where at present he holds a readership in economics. His many contributions, covering a wide range of subjects in utility theory, in the theory of the firm, of international trade and of economic growth, have been published in Economica, The Economic Journal and The Review of Economic Studies in the United Kingdom, in The Journal of Political Economy and The Quarterly Journal of Economics in the United States, and in Rivista di Politica Economica in Italy.
This book is a self-contained introduction to comparative statics analysis which is appropriate for a first year PhD course in mathematics for economists. The demands that modern economic analysis places upon the student renders an incremental approach to learning essential. This permits students' intuition to develop as mathematical tools are employed in problem solving. In this book, students learn comparative statics by doing comparative statics in progressively more sophisticated models. Repeated application of the basic technique allows the student to gain competence in comparative statics analysis with minimal distraction.
In this book Haworth concerns himself with the conceptual foundations of social order and the options for a future society. He analyses two sharply contrasting systems, the one committed to individual satisfaction and independence and the other based on collective values and rewards. Both would retain advanced technology but restrain consumption. The leisure-oriented society would reduce the hours of work at a sacrifice of efficiency and at the expense of individual determination. This analysis provides the basis for a new model of what Haworth calls an 'objective' society, based on the ideals of responsibility, leisureliness, and professionalism.
These ideals imply a sympathetic yet not strictly custodial attitude towards the natural world, a responsible use of human creativity and natural potential, a sense of absorption in the present (in the original Greek sense of leisure which is contrasted with the more recent association of leisure with discretionary time), and above all a sense of professional commitment. Commitment links individuals who locate the point of their lives outside themselves and their private interests in some work for which they have a distinctive talent and in the pursuit of which they experience a meaningful, shared existence.
Lawrence Howarth offers a model, not a blueprint, but it is one that political scientists, economists, sociologists, urban planners, and all who are committed to improving the design of our society should consider carefully.