Mechanisms for Stability and Welfare: Increasing Cooperation Among Self-Interested Agents

Too often an interaction among self-interested parties leads to an outcome that is not in the best interest of any of them. In this thesis, I look at such interactions as games, so that the loss of stability and welfare can be measured and studied using the standard concepts of game theory such as equilibrium and utility. I study and design mechanisms that alter these games in order to induce more cooperation, stable outcomes, and higher utility for the participants.