GRK 1134:  Economic Behaviour and Interaction Models

• Subject Area: Economics
• Term: from 2005 to 2014
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 777777

• Final Report Year: 2014

Final Report Abstract

Within the International Research Training Group ‚Economic Behavior and Interaction Models (EBIM)‘ about 60 doctoral students studied between 2005 and 2014 various aspects of decision making and social interaction in uncertain and dynamic environments. EBIM was carried out in cooperation between Bielefeld University and the University Paris 1 Panthéon-Sorbonne and all Bielefeld students spent at least one semester in Paris. The cooperation between Bielefeld University and Paris was substantially deepened during the duration of EBIM resulting in numerous joint workshops and events as well as cotutelle agreements between the two universities for five EBIM students. Under this agreement the students receive a double-degree from Bielefeld University and the University Paris 1. Based on the mutual cooperation in EBIM the two universities were the driving force in establishing the European Doctorate in Economics – Erasmus Mundus (EDEEM), a joint doctoral program among seven European partners, which since 2011 is funded by the European Commission. EDEEM is coordinated by Bielefeld University. The research of doctoral students in EBIM covered a wide range of topics but was particularly active in the following areas. In dissertation projects dealing with decision making under Knightian uncertainty, the implications of such basic uncertainty about aspects of the environment were analyzed in the context of investment decisions and new concepts to analyze strategic interaction under uncertainty were developed. Several students studied various aspects of network formation among individuals who (strategically) interact. In particular, new results concerning the properties of stable networks in different economic settings and the role of different types of externalities for network stability were derived. Besides purely analytical work research in EBIM has also extended the frontier of Computational Economics. Agent-based simulation models have been developed to analyze the impact of regulatory reform in the banking sector for economic stability, the role of expectations for the growth respectively decline of certain economic sectors or the dynamics of the spatial distribution of economic activity. Research papers resulting from the work of doctoral students in EBIM have in the meantime been published in numerous international journals, including top field journals in economic theory and economic dynamics, like Journal of Economic Theory, Games and Economic Behavior, Theoretical Economics or the Journal of Economic Dynamics and Control.

Publications

• (2006), ’Network Quality and Social Welfare under Different Access Pricing Methods’, EBIM Working Paper 2006-03
  Ebel, N.
  
• (2007), Economic Growth and Business Cycles in a Two-Sector Overlapping-Generations Model, Dissertation, Bielefeld University
  Schmitz, O.
  
• (2007), First Derivatives of the log-L for the multivariate probit model, Working Paper
  Vargas, M. H.
  
• (2007), The Shapley Value of exact Assingment Games, International Journal of Game Theory
  Hoffmann, M. and Sudhölter, P.
  
• (2007), ’Relative and Individual Regulation: An Investigation of Investment Incentives under a Cost-Plus Approach’, EBIM Working Paper 2007-02
  Ebel, N. and Lefouili, Y.
  
• . (2007), ”Under-investment in public goods: The influence of state dependent investment costs”, Working Paper, Bielefeld University
  Ebel, N. and Zou, B.
  
• (2008), Complex Dynamic Behavior in a Two-Sector Solow-Swan-Model, Working Paper, Bielefeld University
  Schmitz, O.
  
• (2008), Evolution of non-expected utility preferences, Dissertation, Bielefeld University, Berlin: Springer
  Von Widekind, S.
  
• (2008), Hold-up and the Evolution of Investment and Bargaining Norms, in Games and Economic Behavior, 62, 26-52
  Dawid, H. and MacLeod, W.B.
  
• (2008), On core stability and apportionment methods, Dissertation, Bielefeld University
  Shellshear, E.
  
• (2008), On Solution Concepts of Assignment Games, Dissertation, Bielefeld University
  Hoffmann, M.
  
• (2008), The Regulation and Liberalization of Network-Based Industries: A Microeconomic Analysis of Network Providers’ Investment Incentives, Dissertation, Bielefeld University
  Ebel, N.
  
• (2008), What is the impact of Duplicate Coverage on the demand for health care in Germany? A Summary. Health and Aging, 19, 10-12
  Vargas, M. H.; Elhewaihi, M.
  
• (2008): Network Formation with Closeness Incentives. In: Naimzada, A.; Stefani, S., and Torriero A. (eds.) 2008: Networks and Dynamics. Springer Lecture Notes in Economic and Mathematical Systems 613, 95-109
  Buechel, B.
  
• (2009), Advances in strategic network formation : preferences, centrality, and externalities, Dissertation, Bielefeld University
  Buechel, B.
  
• (2009), Licensing probabilistic Patents and Liability Rules: The Duopoly Case, Working Paper
  Vargas, M. H.
  
• (2009), On core stability, vital coalitions, and extendability. Games and Economic Behavior, 67, 633-644
  Shellshear, E. and P. Sudhölter
  
• (2009), Optimal Stopping with Multiple Priors, Econometrica, 77, 857-908
  Riedel, F.
  
• (2009), Two support results for the Kalai-Smorodinski solution in small object division markets, Mathematical Social Sciences 57,177-187
  Haake,C.-J.
  
• (2010), Decisions under Imperfect Information – The Ordering of Information Structures and Production under Endogenous Uncertainty, Dissertation, Bielefeld University, Verlag Dr. Kovac, Hamburg, 2010
  Hermelingmeier, C.
  
• (2010), Exercise Strategies for American Options under Ambiguity, IMW working paper 421
  Chudjakov, T. and Vorbrink, J.
  
• (2010), Irreversible Investment in Oligopoly, Finance & Stochastics, 16, 207-224
  Steg, J.-H.
  
• (2010), On Knightian uncertainty models : optimal behavior in presence of model uncertainty, Dissertation, Bielefeld University
  Chudjakov, T.
  
• (2010), On singular control games : with applications to capital accumulation, Dissertation, Bielefeld University
  Steg, J.-H.
  
• (2010), Optimal Foreign Investment Dynamics in the Presence of Technological Spillovers, Journal of Economic Dynamics and Control, 34, 296-311
  Dawid, H., Greiner, A. and B. Zou
  
• (2010), Stable Networks in Static and Dynamic Models of Network Formation, Dissertation, Bielefeld University, Verlag Dr. Kovac
  Hellmann, T.
  
• (2010),New apportionment Methods Using Simple Games, International Game Theory Review, 12, 211-222
  Shellshear, E.
  
• (2010): The competitive firm and the role of information about uncertain factor prices. Economic Modelling, 27, 547-552
  Hermelingmeier, C.
  
• (2011), A Note on Characterizing Core stability with Fuzzy Games, International Game Theory Review, 13, 105-118
  Shellshear, E.
  
• (2011), A Note on Equity Premia in Markets with Heterogeneous Agents, IMW working Paper 444
  Chudjakov, T.
  
• (2011), Consumption selection on incomplete markets, Dissertation, Bielefeld University
  Krsnik, S.
  
• (2011), On the Intergenerational Formation and Evolution of Continuous Preferences, Dissertation, Bielefeld University
  Pichler, M.
  
• (2011), Other-Regarding Preferences in General Equilibrium, Review of Economic Studies, 78, 613-639
  Dufwenberg, M. ,Heidhues, P., Kirchsteiger, G. and F. Riedel and J. Sobel
  
• (2011), “The Dynamic Approach to Heterogeneous Innovations”, Dissertation, Bielefeld University
  Bondarev A.
  
• (2011). Competitive Outcomes and the Core of TU Market Games. IMW Working Paper 454, Institute of Mathematical Economics, Bielefeld University
  Brangewitz, S. and Gamp, J.-P.
  
• (2011). Competitive Outcomes and the Core of TU Market Games. IMW Working Paper 454, Institute of Mathematical Economics, Bielefeld University
  Brangewitz, S. and Gamp, J.-P.
  
• (2011). Inner Core, Asymmetric Nash Bargaining Solutions and Competitive Payoffs. IMW Working Paper 453, Institute of Mathematical Economics, Bielefeld University
  Brangewitz, S. and Gamp, J.-P.
  
• (2011). Inner Core, Asymmetric Nash Bargaining Solutions and Competitive Payoffs. IMW Working Paper 453, Institute of Mathematical Economics, Bielefeld University
  Brangewitz, S. and Gamp, J.-P.
  
• (2011). Learning in Infinite Horizon Strategic Market Games with Collateral and Incomplete Information. IMW Working Paper 456, Institute of Mathematical Economics, Bielefeld University
  Brangewitz, S. and Giraud, G.
  
• (2012), "The long-run dynamics of product and process innovations for a multi-product monopolist," Economics of Innovation and New Technology, 21, 775-799
  Bondarev, A.
  
• (2012), Efficient Wage Bargaining in a Dynamic Macroeconomic Model, IMW Working Paper N° 465
  Böhm, V. and Claas, O.
  
• (2012), Foreign direct investment, human capital accumulation and economic growth: the case of transition countries, Dissertation, Bielefeld University
  Mammadov, J.
  
• (2012), Under-connected and over-connected networks: the role of externalities in strategic network formation, Review of Economic Design, 16, 71-87
  Buechel, B. and Hellmann, T.
  
• (2012), Under-connected and over-connected networks: the role of externalities in strategic network formation, Review of Economic Design, 16, 71-87
  Buechel, B. and Hellmann, T.
  
• (2012). Coalitional and Strategic Market Games, Dissertation, Bielefeld University
  Brangewitz, S.
  
• (2012). Games and their relation to markets, Dissertaion, Bielefeld University
  Gamp, J.-P.
  
• (2013) Ellsberg Games and the Strategic Use of Ambiguity in Normal and Extensive Form Games, Dissertation, Bielefeld University
  Sass, L.
  
• (2013), A degree-distance-based connections model with negative and positive externalities, Center for Mathematical Economics Working Paper 479
  Möhlmeier, P. , Rusinowska, A. and E. Tanimura
  
• (2013), Cheap Money and Risk taking: Opacity Versus Fundamental Risk. European Economic Review 62, 114-129
  Drees, B., Eckwert, B., Várdy, F.
  
• (2013), Hidden symmetries and focal points, Journal of Economic Theory, 148, 226-258
  Alos-Ferer, C. and Kuzmics, C.
  
• (2013), On the existence and uniqueness of pairwise stable networks, International Journal of Game Theory, 42, 211-237
  Hellmann, T.
  
• (2013), Optimal policy and the role of social contacts in a search model with heterogeneous workers, Center for Mathematical Economics Working Paper Working Paper 491
  Stupnytska Y., Zaharieva A.
  
• (2013), Quality Uncertainty with Imperfect Information Acquisition, Center for Mathematical Economics Working Paper No. 487
  Gertz, C.
  
• (2013), The (Non-)Robustness of Influential Cheap Talk Equilibria, Institute of Mathematical Economics Working Paper No. 489
  Diehl, C. and C. Kuzmicz
  
• (2013), The best Choice Problem under Ambiguity, Economic Theory, 54, 77-97
  Chudjakov, T. and Riedel, F.
  
• (2013), The LIBOR Mechanism and Related Games, Institute of Mathematical Economics Working Paper No. 482
  Diehl, C.
  
• (2013). Asymmetric Nash Bargaining Solutions and Competitive Payoffs. Economics Letters, Volume 121, 2, 224-227
  Brangewitz, S. and Gamp, J.-P.
  
• (2013). Asymmetric Nash Bargaining Solutions and Competitive Payoffs. Economics Letters, Volume 121, 2, 224-227.
  Brangewitz, S. and Gamp, J.-P.
  
• (2013): The Dynamics of Closeness and Betweenness. Journal of Mathematical Sociology 37 (3), 159-191
  Buechel, B. and Buskens, V.
  
• (2014), "Endogenous specialization of heterogeneous innovative activities of firms under the technological spillovers," Journal of Economic Dynamics and Control, 38, 235-249
  Bondarev, A.
  (See online at https://doi.org/10.1016/j.jedc.2013.10.002)
• (2014), A Model of Quality Uncertainty with a Continuum of Quality Levels, Center for Mathematical Economics Working Paper No. 522
  Gertz, C.
  (See online at https://doi.org/10.2139/ssrn.2492107)
• (2014), A normative approach to the stability of interbank and bank-firms systems by means of a multi-agent model, Dissertation, Bielefeld University
  Mastrangeli, G.
  
• (2014), Cautious Belief Formation Limited attention in Case Based Beleif Formation Categorization Based Belief Formation, Center for Mathematical Economics Working Paper No. 519
  Bleile, J.
  (See online at https://doi.org/10.2139/ssrn.2490435)
• (2014), Competitive Outcomes and the Inner Core of NTU Market Games, forthcoming Economic Theory
  Brangewitz, S. and Gamp, J.-P.
  (See online at https://doi.org/10.1007/s00199-014-0846-7)
• (2014), Competitive Outcomes and the Inner Core of NTU Market Games. Economic Theory, November 2014, Volume 57, Issue 3, pp 529–554
  Brangewitz, S. and Gamp, J.-P.
  (See online at https://doi.org/10.1007/s00199-014-0846-7)
• (2014), Essays on multiple layers of uncertainty in economics, Dissertation, Bielefeld University
  Diehl, C.
  
• (2014), Explaining the U-shape of the referral hiring pattern in a search model with heterogeneous workers, Center for Mathematical Economics Working Paper 511
  Stupnytska Y., Zaharieva A.
  
• (2014), Probabilistic Transitivity in Sports, Center for Mathematical Economics Working Paper No. 520
  Külpmann, P. and Tiwisina, J.
  (See online at https://doi.org/10.2139/ssrn.2490457)
• (2014), Probabilistic Transitivity in Sports, Center for Mathematical Economics Working Paper No. 520
  Külpmann, P. and Tiwisina, J.
  (See online at https://doi.org/10.2139/ssrn.2490457)
• (2014), Stable Networks in Homogeneous Societies. Center for Mathematical Economics Working Paper 517
  Hellmann, T. and J. Landwehr
  (See online at https://doi.org/10.2139/ssrn.2477452)
• (2014), Strategic Location Choice Under Dynamic Oligopolistic Competition and Spillovers, in Journal of Economic Dynamics and Control
  Colombo, L. and H. Dawid
  (See online at https://doi.org/10.1016/j.jedc.2014.05.018)
• (2014), Symmetric play in repeated allocation games, in the Journal of Economic Theory, Volume 154, November 2014, Pages 25-67
  Kuzmics, C. and Palfrey, T. and B. Rogers
  (See online at https://doi.org/10.1016/j.jet.2014.08.002)
• (2014), The Role of Information in Markets with Quality Uncertainty, Dissertation, Bielefeld University
  Gertz, C.
  
• (2014),Wage Bargaining, Employment, and Union Power: The Right-to-Manage Approach, IMW Working Paper N° 502
  Böhm, V. and Claas, O.
  (See online at https://doi.org/10.2139/ssrn.2391224)
• (2014). Continuous Homophily and Clustering in Random Networks. Center for Mathematical Economics Working Paper No. 515
  Gauer, F. and Landwehr, J.
  (See online at https://doi.org/10.2139/ssrn.2470176)
• (2014). Continuous Homophily and Clustering in Random Networks. Center for Mathematical Economics Working Paper No. 515
  Gauer, F. and Landwehr, J.
  (See online at https://doi.org/10.2139/ssrn.2470176)
• Ellsberg Games, in: Theory and Decision, April 2014, Volume 76, Issue 4, pp 469–509
  Riedel, F. and L. Sass
  (See online at https://doi.org/10.1007/s11238-013-9381-4)
• Information and the Dispersion of Posterior Expectations. Journal of Economic Theory, Volume 154, November 2014, Pages 604-611
  Brandt, N., Drees, B., Eckwert, B., Várdy, F.
  (See online at https://doi.org/10.1016/j.jet.2014.10.004)
• The Dynamics of Continuous Cultural Traits in Social Networks. Journal of Economic Theory Volume 154, November 2014, Pages 274-309
  Buechel, B., Hellmann, T. and Pichler, M.
  (See online at https://doi.org/10.1016/j.jet.2014.09.008)
• The Dynamics of Continuous Cultural Traits in Social Networks. Journal of Economic Theory, Volume 154, November 2014, Pages 274-309
  Buechel, B., Hellmann, T. and Pichler, M.
  (See online at https://doi.org/10.1016/j.jet.2014.09.008)
• The Foster-Hart measure of riskiness for general gambles, Theoretical Economics, Vol 10 Issue 1, January 2015, Pages 1-9
  Riedel, F. Hellmann, T
  (See online at https://doi.org/10.3982/TE1499)