faqs.org » Abstracts Index » Abstracts » Economics

The economics of convention

Article Abstract:

The role of conventions in stabilized institutional socio-economic interaction has thus far received scant attention. The dynamics of convention presupposes adequate individual rationality in the midst of limited options and unforseen consequences. The evolutionary mechanism of convention formation encompasses the accumulation and gradual accretion of precedent. Convention or equilibrium in expected social and economic behavior acquires significance due to its inherent stability over an extended time frame and its power to govern all social and economic activities.

Social aspects, Economic aspects, Manners and customs, Organizational behavior, Behavior evolution, Behavioral evolution

---

Analyzing the airwaves auction

Article Abstract:

The game theory is set to revolutionize the auctions with its new simultaneous ascending auction model. The Federal Communications Commission used it in airwave auction of 1994. The simultaneous ascending auction helps efficient license aggregation by enabling a bidder to shift to a back-up aggregation, in case bid prices rose high in its first-choice aggregation. The new method will be extremely useful for the auctions of complementary items such as oil and mineral rights, or timber and grazing rights.

Auctions

---

Knowledge and equilibrium in games

Article Abstract:

Game theory's economic applications mostly take the form of noncooperative game theory. Decision-making in interactive situations such as iterated dominance, rationalizability, pure-strategy Nash equilibrium, mixed-strategy Nash equilibrium in two person games, mixed strategy Nash equilibrium in many-person games and correlated equilibrium can be done using an alternative interactive decision theory. It is based on game theory but can be used by non-game theorists.

Methods, Decision-making, Decision making

Some parts © 2012 Advameg, Inc.