Conflict and negotiation: a game theoretical approach

We study economic conflicts using a game theoretical approach. We model a conflict between two agents where each one has two possible strategies: cease-fire or neglect the truce. Under this setting, we use the concept of pre-donations, namely, a redefinition of the game where agents commit to transfer a share of their output to the other agent (Sertel, 1992), and explain under which conditions a system of pre-donations can facilitate a truce. We find that for conflicts involving high costs there is a distributive mechanism, acceptable for both parties, such that, the best strategy for both parties is Cease-Fire. However, in many cases there are no sufficient conditions for the scheme or pre-donations to be effective. We also analyze some limitations of this framework and extend the model in order to deal with some of these flaws. Finally, in order to illustrate the relevance of the theoretical results we briefly describe some of the circumstances that characterized the negotiation processes between the Colombian government and different illegal groups.

The EEAS and the Eastern Partnership: let the blame game stop. CEPS Commentary, 4 September 2012

In the first year and a half of its existence, the EEAS and its head have become the target of extensive criticism for the shortcomings of EU foreign policy; shortcomings that in fact date back to the creation of the European Union. The EU’s diplomatic service has been blamed variously for ‘lacking clarity,’ ‘acting too slowly’ and ‘being unable to bridge the institutional divide’. In this Commentary author Hrant Kostanyan argues that the EEAS’ discretionary power in the Eastern Partnership multilateral framework is restricted by the decision-making procedures between a wide range of stakeholders: the member states and the partner countries, as well as by the EU institutions, international organisations and the Civil Society Forum. Since this decision-making process places a substantial number of brakes on the discretionary power of the EEAS, any responsible analysis or critique of the service should take these constraints into consideration. Ultimately, the EEAS is only able to craft EU foreign policy insofar as it is allowed to do so.

KQQKQQ and the Kasparov-World Game

The 1999 Kasparov-World game for the first time enabled anyone to join a team playing against a World Chess Champion via the web. It included a surprise in the opening, complex middle-game strategy and a deep ending. As the game headed for its mysterious finale, the World Team re-quested a KQQKQQ endgame table and was provided with two by the authors. This paper describes their work, compares the methods used, examines the issues raised and summarises the concepts involved for the benefit of future workers in the endgame field. It also notes the contribution of this endgame to chess itself.

“Financial alchemy” or a zero sum game? Real estate finance, securitisation and the UK property market

Following the US model, the UK has seen considerable innovation in the funding, finance and procurement of real estate in the last decade. In the growing CMBS market asset backed securitisations have included $2.25billion secured on the Broadgate office development and issues secured on Canary Wharf and the Trafford Centre regional mall. Major occupiers (retailer Sainsbury’s, retail bank Abbey National) have engaged in innovative sale & leaseback and outsourcing schemes. Strong claims are made concerning the benefits of such schemes – e.g. British Land were reported to have reduced their weighted cost of debt by 150bp as a result of the Broadgate issue. The paper reports preliminary findings from a project funded by the Corporation of London and the RICS Research Foundation examining a number of innovative schemes to identify, within a formal finance framework, sources of added value and hidden costs. The analysis indicates that many of the gains claimed conceal costs – in terms of market value of debt or flexibility of management – while others result from unusual firm or market conditions (for example utilising the UK long lease and the unusual shape of the yield curve). Nonetheless, there are real gains resulting from the innovations, reflecting arbitrage and institutional constraints in the direct (private) real estate market

Real options and game theoretical approaches to real estate development projects: multiple equilibria and the implications of different tie-breaking rules

This paper contributes to a fast growing literature which introduces game theory in the analysis of real option investments in a competitive setting. Specifically, in this paper we focus on the issue of multiple equilibria and on the implications that different equilibrium selections may have for the pricing of real options and for subsequent strategic decisions. We present some theoretical results of the necessary conditions to have multiple equilibria and we show under which conditions different tie-breaking rules result in different economic decisions. We then present a numerical exercise using the in formation set obtained on a real estate development in South London. We find that risk aversion reduces option value and this reduction decreases marginally as negative externalities decrease.

Formal theory building for the avalanche game: explaining counter-intuitive behaviour of a complex system using geometrical and human behavioural/physiological effects

In 'Avalanche', an object is lowered, players staying in contact throughout. Normally the task is easily accomplished. However, with larger groups counter-intuitive behaviours appear. The paper proposes a formal theory for the underlying causal mechanisms. The aim is to not only provide an explicit, testable hypothesis for the source of the observed modes of behaviour-but also to exemplify the contribution that formal theory building can make to understanding complex social phenomena. Mapping reveals the importance of geometry to the Avalanche game; each player has a pair of balancing loops, one involved in lowering the object, the other ensuring contact. For more players, sets of balancing loops interact and these can allow dominance by reinforcing loops, causing the system to chase upwards towards an ever-increasing goal. However, a series of other effects concerning human physiology and behaviour (HPB) is posited as playing a role. The hypothesis is therefore rigorously tested using simulation. For simplicity a 'One Degree of Freedom' case is examined, allowing all of the effects to be included whilst rendering the analysis more transparent. Formulation and experimentation with the model gives insight into the behaviours. Multi-dimensional rate/level analysis indicates that there is only a narrow region in which the system is able to move downwards. Model runs reproduce the single 'desired' mode of behaviour and all three of the observed 'problematic' ones. Sensitivity analysis gives further insight into the system's modes and their causes. Behaviour is seen to arise only when the geometric effects apply (number of players greater than degrees of freedom of object) in combination with a range of HPB effects. An analogy exists between the co-operative behaviour required here and various examples: conflicting strategic objectives in organizations; Prisoners' Dilemma and integrated bargaining situations. Additionally, the game may be relatable in more direct algebraic terms to situations involving companies in which the resulting behaviours are mediated by market regulations. Finally, comment is offered on the inadequacy of some forms of theory building and the case is made for formal theory building involving the use of models, analysis and plausible explanations to create deep understanding of social phenomena.

Game-theoretic aspects of international mergers: Theory and case studies

This paper studies the exclusion of potential competition as a motivating factor for international mergers. We propose a simple game-theoretic framework in order to discuss the conditions under which mergers that prevent reciprocal domestic competition will occur. Our analysis highlights the shortcomings of antitrust policies based on pre-merger/post-merger concentration comparisons. A review of several recent European cases suggests that actual merger policy often fails to consider potential competition.

Imbalanced functional link between executive control network and reward network explain the online-game seeking behaviors in Internet gaming disorder

Literatures have shown that Internet gaming disorder (IGD) subjects show impaired executive control and enhanced reward sensitivities than healthy controls. However, how these two networks jointly affect the valuation process and drive IGD subjects' online-game-seeking behaviors remains unknown. Thirty-five IGD and 36 healthy controls underwent a resting-states scan in the MRI scanner. Functional connectivity (FC) was examined within control and reward network seeds regions, respectively. Nucleus accumbens (NAcc) was selected as the node to find the interactions between these two networks. IGD subjects show decreased FC in the executive control network and increased FC in the reward network when comparing with the healthy controls. When examining the correlations between the NAcc and the executive control/reward networks, the link between the NAcc - executive control network is negatively related with the link between NAcc - reward network. The changes (decrease/increase) in IGD subjects' brain synchrony in control/reward networks suggest the inefficient/overly processing within neural circuitry underlying these processes. The inverse proportion between control network and reward network in IGD suggest that impairments in executive control lead to inefficient inhibition of enhanced cravings to excessive online game playing. This might shed light on the mechanistic understanding of IGD.

Textual Differences in Game Reviews Written by Men and Women

The aim of this essay is to examine the differences in language use between the genders in game reviews, to find whether there are differences in the use of the language depending on gender. Both sexist language and technical aspects are examined, the technical aspects of writing have been chosen from previous research about gendered differences in writing. The reviews are randomly chosen but the games are selected. There is an equal amount of games with male and female main characters, and the number of reviews is chosen according to the number of reviews written by females, as there are fewer of them, and thus easier to find a matching number of reviews written by males rather than vice versa. The reviews are then examined to find sexist language and differences. This essay finds that there is sexist language in the writing of both genders, such as marked language, but only when the main character of the game is female. Both genders tend to focus on the appearance of female characters and the characteristics of male characters, but there is no known previous research about male and female game characters to compare these results to. However, the technical differences remain consistent with previous research on the same subject, such as female reviewers using more pronouns than male reviewers, and male reviewers using fewer verbs than female reviewers.

Game Audio in Audio Games : Towards a Theory on the Roles and Functions of Sound in Audio Games

For the past few decades, researchers have increased our understanding of how sound functions within various audio–visual media formats. With a different focus in mind, this study aims to identify the roles and functions of sound in relation to the game form Audio Games, in order to explore the potential of sound when acting as an autonomous narrative form. Because this is still a relatively unexplored research field, the main purpose of this study is to help establish a theoretical ground and stimulate further research within the field of audio games. By adopting an interdisciplinary approach to the topic, this research relies on theoretical studies, examinations of audio games and contact with the audio game community. In order to reveal the roles of sound, the gathered data is analyzed according to both a contextual and a functional perspective. The research shows that a distinction between the terms ‘function’ and ‘role’ is important when analyzing sound in digital games. The analysis therefore results in the identification of two analytical levels that help define the functions and roles of an entity within a social context, named the Functional and the Interfunctional levels. In addition to successfully identifying three main roles of sound within audio games—each describing the relationship between sound and the entities game system, player and virtual environment—many other issues are also addressed. Consequently, and in accordance with its purpose, this study provides a broad foundation for further research of sound in both audio games and video games.

Euroland - The effect of Euro on international trade : Are there winners and losers in this ''Euro-game''?

This paper examines whether European Monetary Union (EMU) countries share fairly the effect of their membership in Eurozone (EZ) or whether are winners and losers in this ''Euro-game''. By using panel data of 27 European Union (EU) Member States for the period 2001-2012 in the context of a gravity model, we focus on estimating the Euro’s effect on bilateral trade and we detect whether this effect differs across the Member States of EZ. Two estimation methods are applied: Pooled OLS estimator and Fixed Effects estimator. The empirical results come to the conclusion that the individual country effects differ and are statistically significant, indicating that EMU’s effect on trade differs across the Member States of EZ. The overall effect of the Euro is statistically insignificant, regardless the estimation method, demonstrating that the common European currency may have no effect on bilateral trade.