Pub Date : 2026-01-01Epub Date: 2025-11-06DOI: 10.1016/j.geb.2025.11.003
Wataru Ishida , Changwoo Park
We introduce the problem of allocating objects when society is partitioned into groups of agents, each collectively owning a number of objects equal to its size. We propose a new axiom, called “within-group endowments lower bounds”, which requires that each agent find his assignment at least as desirable as his least preferred object among those owned by the group to which he belongs. We identify and characterize a family of rules satisfying this axiom in addition to efficiency, group strategy-proofness, and group-wise neutrality. We also consider two core notions, the “standard core” and the “exclusion core” (Balbuzanov and Kotowski, 2019). Our finding is that they are independent notions, unlike in traditional ownership structures (e.g., collective, private, and mixed ownership), and that our proposed rules always recommend allocations in their intersection.
{"title":"Group incentive-compatible allocation of discrete resources when ownership is partitioned","authors":"Wataru Ishida , Changwoo Park","doi":"10.1016/j.geb.2025.11.003","DOIUrl":"10.1016/j.geb.2025.11.003","url":null,"abstract":"<div><div>We introduce the problem of allocating objects when society is partitioned into groups of agents, each collectively owning a number of objects equal to its size. We propose a new axiom, called “within-group endowments lower bounds”, which requires that each agent find his assignment at least as desirable as his least preferred object among those owned by the group to which he belongs. We identify and characterize a family of rules satisfying this axiom in addition to efficiency, group strategy-proofness, and group-wise neutrality. We also consider two core notions, the “standard core” and the “exclusion core” (Balbuzanov and Kotowski, 2019). Our finding is that they are independent notions, unlike in traditional ownership structures (e.g., collective, private, and mixed ownership), and that our proposed rules always recommend allocations in their intersection.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"155 ","pages":"Pages 287-309"},"PeriodicalIF":1.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145624170","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-02DOI: 10.1016/j.geb.2025.09.013
Laurent Bartholdi , Roman Mikhailov
We introduce a topological invariant of games, based on homotopy theory, that measures their complexity. We examine it in the context of the “Texas Hold'em” variant of poker, and show that the invariant's value is at least 4. We deduce that evaluating the strength of a pair of cards in Texas Hold'em is an intricate problem, and that even the notion of who is bluffing against whom is ill-defined in some situations. The use of higher topological methods to study intransitivity of multi-player games seems new.
{"title":"The topology of poker","authors":"Laurent Bartholdi , Roman Mikhailov","doi":"10.1016/j.geb.2025.09.013","DOIUrl":"10.1016/j.geb.2025.09.013","url":null,"abstract":"<div><div>We introduce a topological invariant of games, based on homotopy theory, that measures their complexity. We examine it in the context of the “Texas Hold'em” variant of poker, and show that the invariant's value is at least 4. We deduce that evaluating the strength of a pair of cards in Texas Hold'em is an intricate problem, and that even the notion of who is bluffing against whom is ill-defined in some situations. The use of higher topological methods to study intransitivity of multi-player games seems new.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"155 ","pages":"Pages 1-9"},"PeriodicalIF":1.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145271441","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-11-03DOI: 10.1016/j.geb.2025.10.011
Pedro Calleja , Francesc Llerena
In this paper, we explore the issue of manipulability in the setting of financial systems by considering two weak forms of immunity: merging-proofness and splitting-proofness. Not surprisingly, splitting-proofness conflicts with basic requirements such as the priority of debt over equity and the limited liability of equity. Remarkably, we provide a comprehensive characterization of the class of bankruptcy rules that gives rise to financial rules that satisfy merging-proofness.
{"title":"Merging-splitting-proofness in financial systems: A characterization result","authors":"Pedro Calleja , Francesc Llerena","doi":"10.1016/j.geb.2025.10.011","DOIUrl":"10.1016/j.geb.2025.10.011","url":null,"abstract":"<div><div>In this paper, we explore the issue of manipulability in the setting of financial systems by considering two weak forms of immunity: merging-proofness and splitting-proofness. Not surprisingly, splitting-proofness conflicts with basic requirements such as the priority of debt over equity and the limited liability of equity. Remarkably, we provide a comprehensive characterization of the class of bankruptcy rules that gives rise to financial rules that satisfy merging-proofness.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"155 ","pages":"Pages 212-227"},"PeriodicalIF":1.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145526269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-13DOI: 10.1016/j.geb.2025.10.004
Gregorio Curello , Ludvig Sinander
Most comparisons of preferences are instances of single-crossing dominance. We examine the lattice structure of single-crossing dominance, proving characterisation, existence and uniqueness results for minimum upper bounds of arbitrary sets of preferences. We apply these theorems to derive new comparative statics theorems for collective choice and under analyst uncertainty, and to characterise a general ‘maxmin’ class of uncertainty-averse preferences over Savage acts.
{"title":"Single-crossing dominance: A preference lattice","authors":"Gregorio Curello , Ludvig Sinander","doi":"10.1016/j.geb.2025.10.004","DOIUrl":"10.1016/j.geb.2025.10.004","url":null,"abstract":"<div><div>Most comparisons of preferences are instances of <em>single-crossing dominance.</em> We examine the lattice structure of single-crossing dominance, proving characterisation, existence and uniqueness results for minimum upper bounds of arbitrary sets of preferences. We apply these theorems to derive new comparative statics theorems for collective choice and under analyst uncertainty, and to characterise a general ‘maxmin’ class of uncertainty-averse preferences over Savage acts.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"155 ","pages":"Pages 70-88"},"PeriodicalIF":1.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145364407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We study a variant of the principal-agent problem in which the principal does not directly observe the agent's effort outcome; rather, she gets a signal about the agent's action according to a variable information structure designed by a regulator. We consider both the case of a risk-neutral and of a risk-averse agent, focusing mainly on a setting with a limited liability assumption. We provide a clean characterization for implementability of actions and utility profiles by any information structure, which turns out to be simple thresholds on the utilities. We further study naturally-constrained information structures in which the signal emitted from any action is either the action itself or some actions nearby. We show that the worst implementable welfare deteriorates gracefully as the information structure becomes noisier. In a more general class of signaling constraints, we prove that deciding whether a certain action is implementable is NP-complete.
{"title":"Information design in the principal-agent problem","authors":"Yakov Babichenko , Inbal Talgam-Cohen , Haifeng Xu , Konstantin Zabarnyi","doi":"10.1016/j.geb.2025.10.003","DOIUrl":"10.1016/j.geb.2025.10.003","url":null,"abstract":"<div><div>We study a variant of the principal-agent problem in which the principal does not directly observe the agent's effort outcome; rather, she gets a signal about the agent's action according to a variable information structure designed by a regulator. We consider both the case of a risk-neutral and of a risk-averse agent, focusing mainly on a setting with a limited liability assumption. We provide a clean characterization for implementability of actions and utility profiles by any information structure, which turns out to be simple thresholds on the utilities. We further study naturally-constrained information structures in which the signal emitted from any action is either the action itself or some actions nearby. We show that the worst implementable welfare deteriorates gracefully as the information structure becomes noisier. In a more general class of signaling constraints, we prove that deciding whether a certain action is implementable is NP-complete.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"155 ","pages":"Pages 55-69"},"PeriodicalIF":1.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145323180","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-01Epub Date: 2025-10-24DOI: 10.1016/j.geb.2025.10.006
Rahul Chandan , Keith Paarporn , Dan Kovenock , Mahnoosh Alizadeh , Jason R. Marden
Can intentionally decreasing one’s own competitive abilities provide strategic benefits in adversarial environments? We investigate whether a competitor can gain an advantage by conceding valuable assets to an opponent under a well studied framework known as General Lotto games. While intuition suggests this cannot be done, we demonstrate that concessions do offer strategic benefits when made correctly. We explore concessions in two settings: 1) General Lotto games, which depict 1-vs.-1 adversarial interactions, and 2) coalitional Lotto games, which depict two independent players competing against a common adversary (2-vs.-1) on non-overlapping contests. Our first result shows that conceding budgetary resources cannot be advantageous in either setting. However, we demonstrate that conceding valuable contests can be beneficial in the coalitional setting, characterizing optimal concessions when they exist. When both independent players in the coalitional setting have the option to concede, we characterize the Nash equilibria that emerge in this strategic scenario.
{"title":"The art of concession in General Lotto games","authors":"Rahul Chandan , Keith Paarporn , Dan Kovenock , Mahnoosh Alizadeh , Jason R. Marden","doi":"10.1016/j.geb.2025.10.006","DOIUrl":"10.1016/j.geb.2025.10.006","url":null,"abstract":"<div><div>Can intentionally decreasing one’s own competitive abilities provide strategic benefits in adversarial environments? We investigate whether a competitor can gain an advantage by conceding valuable assets to an opponent under a well studied framework known as General Lotto games. While intuition suggests this cannot be done, we demonstrate that concessions do offer strategic benefits when made correctly. We explore concessions in two settings: 1) General Lotto games, which depict 1-vs.-1 adversarial interactions, and 2) coalitional Lotto games, which depict two independent players competing against a common adversary (2-vs.-1) on non-overlapping contests. Our first result shows that conceding budgetary resources cannot be advantageous in either setting. However, we demonstrate that conceding valuable contests can be beneficial in the coalitional setting, characterizing optimal concessions when they exist. When both independent players in the coalitional setting have the option to concede, we characterize the Nash equilibria that emerge in this strategic scenario.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"155 ","pages":"Pages 89-106"},"PeriodicalIF":1.0,"publicationDate":"2026-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145418871","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01Epub Date: 2025-10-02DOI: 10.1016/j.geb.2025.09.008
Olga Gorelkina , Rida Laraki , Maxime Reynouard
This paper presents a novel solution concept, called BAR Nash Equilibrium (BARNE) and applies it to the Verifier's Dilemma, a fundamental problem in the design of blockchain consensus. BARNE extends the Nash Equilibrium (NE) to accommodate interactions among Byzantine, altruistic, and rational agents, known as the BAR setting in the distributed computing literature. We prove the existence of BARNE in a broad class of games and introduce two refinements: global stability and local stability. We demonstrate that in the classical quorum-based blockchain protocol, honestly following the prescribed strategy is not a locally stable BARNE, whereas free-riding is a globally stable BARNE. To address this, we designed a more robust protocol with the same classical guarantees, by incorporating fines and forced errors. Under this new protocol, honesty becomes the unique globally stable BARNE, and free-riding is never a BARNE.
{"title":"BAR Nash equilibrium and application to blockchain design","authors":"Olga Gorelkina , Rida Laraki , Maxime Reynouard","doi":"10.1016/j.geb.2025.09.008","DOIUrl":"10.1016/j.geb.2025.09.008","url":null,"abstract":"<div><div>This paper presents a novel solution concept, called BAR Nash Equilibrium (BARNE) and applies it to the Verifier's Dilemma, a fundamental problem in the design of blockchain consensus. BARNE extends the Nash Equilibrium (NE) to accommodate interactions among Byzantine, altruistic, and rational agents, known as the BAR setting in the distributed computing literature. We prove the existence of BARNE in a broad class of games and introduce two refinements: global stability and local stability. We demonstrate that in the classical quorum-based blockchain protocol, honestly following the prescribed strategy is not a locally stable BARNE, whereas free-riding is a globally stable BARNE. To address this, we designed a more robust protocol with the same classical guarantees, by incorporating fines and forced errors. Under this new protocol, honesty becomes the unique globally stable BARNE, and free-riding is never a BARNE.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"154 ","pages":"Pages 285-301"},"PeriodicalIF":1.0,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145266859","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01Epub Date: 2025-09-04DOI: 10.1016/j.geb.2025.08.011
Sebastian Schweighofer-Kodritsch , Steffen Huck , Macartan Humphreys
We introduce political salience into a canonical model of attacks against political regimes, as scaling agents' expressive payoffs from taking sides. Equilibrium balances heterogeneous expressive motives with incentives to avoid sanctions by “bandwagoning” with the winning side. We examine comparative statics in political salience, which we characterize in terms of equilibrium stability as well as attack size. A main insight is that when regime sanctions are weak, increases in salience can pose the greatest threat to seemingly safe regimes: ever smaller shocks become sufficient to drastically escalate into full-blown attacks, i.e., the regime becomes less resilient. Stronger regime safeguards not only directly reduce incentives to attack but can overturn these effects, such that increases in salience boost regime resilience. Our results speak to charged debates about democratic resilience, by identifying how safeguards determine when a rise in citizen interest in political action can lead to a threat to democracy.
{"title":"Political salience, endogenous bandwagoning, and regime resilience","authors":"Sebastian Schweighofer-Kodritsch , Steffen Huck , Macartan Humphreys","doi":"10.1016/j.geb.2025.08.011","DOIUrl":"10.1016/j.geb.2025.08.011","url":null,"abstract":"<div><div>We introduce political salience into a canonical model of attacks against political regimes, as scaling agents' expressive payoffs from taking sides. Equilibrium balances heterogeneous expressive motives with incentives to avoid sanctions by “bandwagoning” with the winning side. We examine comparative statics in political salience, which we characterize in terms of equilibrium stability as well as attack size. A main insight is that when regime sanctions are weak, increases in salience can pose the greatest threat to seemingly safe regimes: ever smaller shocks become sufficient to drastically escalate into full-blown attacks, i.e., the regime becomes less resilient. Stronger regime safeguards not only directly reduce incentives to attack but can overturn these effects, such that increases in salience boost regime resilience. Our results speak to charged debates about democratic resilience, by identifying how safeguards determine when a rise in citizen interest in political action can lead to a threat to democracy.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"154 ","pages":"Pages 79-96"},"PeriodicalIF":1.0,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145020701","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01Epub Date: 2025-08-18DOI: 10.1016/j.geb.2025.08.004
Guy Holburn , Davin Raiha
Organized public demonstrations of voter support for policy issues through rallies and petitions are mechanisms by which interest groups sometimes seek to influence political decision-making. We develop a voter-participation model of an interest group's strategic decision to publicly mobilize supportive voters through either a petition with zero participation cost or through a public rally with positive participation cost. Our model shows that voter mobilization can be influential when elected politicians are sufficiently uncertain about two dimensions of voters' preferences, the breadth of support for the issue and the saliency of the issue. The distribution of voter preferences – defined by the numbers of policy supporters and opposers and election vote-switchers and non-switchers – determines whether low or high participation-cost forms of mobilization are optimal. The model's predictions are consistent with recent mobilization campaigns organized by a range of interest groups, such as firms, environmental activists, and racial justice advocates.
{"title":"Strategic mobilization of voters","authors":"Guy Holburn , Davin Raiha","doi":"10.1016/j.geb.2025.08.004","DOIUrl":"10.1016/j.geb.2025.08.004","url":null,"abstract":"<div><div>Organized public demonstrations of voter support for policy issues through rallies and petitions are mechanisms by which interest groups sometimes seek to influence political decision-making. We develop a voter-participation model of an interest group's strategic decision to publicly mobilize supportive voters through either a petition with zero participation cost or through a public rally with positive participation cost. Our model shows that voter mobilization can be influential when elected politicians are sufficiently uncertain about two dimensions of voters' preferences, the breadth of support for the issue and the saliency of the issue. The distribution of voter preferences – defined by the numbers of policy supporters and opposers and election vote-switchers and non-switchers – determines whether low or high participation-cost forms of mobilization are optimal. The model's predictions are consistent with recent mobilization campaigns organized by a range of interest groups, such as firms, environmental activists, and racial justice advocates.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"154 ","pages":"Pages 1-15"},"PeriodicalIF":1.0,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145011141","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01Epub Date: 2025-09-26DOI: 10.1016/j.geb.2025.09.005
Saltuk Ozerturk , Huseyin Yildirim
We examine team incentives in environments with positive spillovers and rewards based on ex-post public credit for collective success. Compared to the ex-ante efficient credit allocation that maximizes the team's overall payoff, ex-post credit distorts individual incentives: higher-ability or lower-cost agents receive excessive credit and overexert effort when spillovers are low, but are under-credited and insufficiently motivated when spillovers are high. To address these inefficiencies, organizations may optimally limit spillovers by restricting peer communication or reducing transparency in teamwork. Moreover, concerns about credit-sharing can deter agents from inviting collaborators or selecting the most capable partners when leading projects.
{"title":"Who gets the credit? Credit attribution, spillovers, and inefficiency in teams","authors":"Saltuk Ozerturk , Huseyin Yildirim","doi":"10.1016/j.geb.2025.09.005","DOIUrl":"10.1016/j.geb.2025.09.005","url":null,"abstract":"<div><div>We examine team incentives in environments with positive spillovers and rewards based on ex-post public credit for collective success. Compared to the ex-ante efficient credit allocation that maximizes the team's overall payoff, ex-post credit distorts individual incentives: higher-ability or lower-cost agents receive excessive credit and overexert effort when spillovers are low, but are under-credited and insufficiently motivated when spillovers are high. To address these inefficiencies, organizations may optimally limit spillovers by restricting peer communication or reducing transparency in teamwork. Moreover, concerns about credit-sharing can deter agents from inviting collaborators or selecting the most capable partners when leading projects.</div></div>","PeriodicalId":48291,"journal":{"name":"Games and Economic Behavior","volume":"154 ","pages":"Pages 246-266"},"PeriodicalIF":1.0,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145220902","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}