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Exact(16)
However, fair bargaining makes adjusting to outside options difficult and may cause inefficient outcomes.
We show that such dynamic schemes do not necessarily induce inefficient outcomes.
Economists call this a negative externality, which creates market failure (a situation where unregulated markets produce inefficient outcomes).
The results revealed that the first-price mechanism yields inefficient outcomes and a notable reduction in the seller's revenues.
By contrast, we find that symmetries in the network architecture can lead to mis-coordination and inefficient outcomes.
Although this is a baseline study involving high uncertainty about the future, the findings point at some issues with the delegation approach that could lead to inefficient outcomes.
Similar(44)
In contrast, statement of approval induces subjects to converge towards the most inefficient outcome.
The result for both parties depends on the individual effort that each of them puts in; uncoordinated effort levels are shown to result in an inefficient outcome.
Yet a simple change of rules prevents this "inefficient" outcome.
In this context, if we assumed that players are selfish, the unique subgame perfect Nash equilibrium would result in the inefficient outcome where all players contribute zero at every period.
It is the logic of the prisoners' situation, not their psychology, that traps them in the inefficient outcome, and if that really is their situation then they are stuck in it (barring further complications to be discussed below).
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com