DP9814 X-Games

Author(s): Kfir Eliaz, Ran Spiegler
Publication Date: February 2014
Keyword(s): Contagion, Coordination, Externalities, Strategic complementarities
JEL(s): C72
Programme Areas: Industrial Organization
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=9814

What is common to the following situations: incentivizing collective action in the presence of social preferences, monopoly pricing when consumers are loss averse, arms races when players are privately informed of their armament costs? We present a simple formalism, called X-games, which unifies these situations as well as others, and use it to unify and extend the separate analyses that they received in the literature.