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10.04. Micro Theory Seminar: Christian Seel

Micro Theory Seminar with Christian Seel (Maastricht University)

Event details
  • Micro Theory Seminar
When Apr 10, 2019
from 16:30 to 17:45
Where Faculty Room
Contact Name Stephan Lauermann
Contact Email
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 An index of competitiveness or cooperation for normal-form games


 We develop an index of competitiveness (or cooperation) for normal-form games which can be computed from the primitives of the game, i.e., players, strategies and payoffs. The index relies on a unique decomposition of a given game into a zero-sum game and a common-interest game. It decreases in the distance to its zero-sum part and it increases in the distance to its common-interest part. Alternatively, the index increases if the variation in payoffs captured by the zero-sum part increases.
We compute our index for well-known classes of games such as various bi-matrix games, all-pay auctions, Tullock contests, and public good games. In all considered games, the comparative statics of our index coincide with economic intuition. The index does well in explaining experimental findings in the sense that more cooperative or less competitive behavior correlates with lower values of our index.


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