6800 Software Gourmet Guide and Cookbook - download pdf or read online

By Robert Findley

ISBN-10: 0810462818

ISBN-13: 9780810462816

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Games and Economic Behavior, 42, 156-171. Suijs, J. and P. Borm, 1999. 'Cooperative games: Superadditivity, convexity, and certainty equivalents'. Games and Economic Behavior, 27, 331-345. , P. Borm and A. De Waegenaere, 1998. 'Stochastic cooperative games in insurance', Insurance: Mathematics & Economics, 22, 209-228. , P. Borm, A, De Waegenaere and S. Tijs, 1999. 'Cooperative games with stochastic payoffs', European Journal of Operational Research, 113, 193-205. Suzuki, M. and M. Nakayama, 1976.

Since we do not see which different actions players could take in the interpretation (b) of the cost function, then we assume that each coalition actually has the possibility to choose a unique action (in other words we assume that to each coalition corresponds a set of precisely one action). Moreover, at the present we assume that there are no possibilities of ex-ante deterministic transfer payments. So we suppose di = 0 for each i e N. On the other hand, no particular computational difficulties should arise if we would 16 Dinar, Moretti, Patrone andZara be willing to take into account both these deterministic transfers and different actions.

4. INCENTIVES FOR DISCOVERY EFFORT One consequence of the derivations above is that the Principal may be better off when the discovery is small. Indeed define the Principal's payoffs as V_ =: u{q) -t V = u{q) - I In regimes 2 and 3, the incentive constraint (2) is binding. ^ This shows that the Principal gets a higher payoff when the discovery is small. The same result holds also in Regime 1, where the welfare obtained by the principal is W,{u) = 2 (^i^u ( ^ 0 + (1 - u)u ( 0 ) - uu{Ad) which is decreasing in ly from the concavity of i^.

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6800 Software Gourmet Guide and Cookbook by Robert Findley

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