We consider a two stage diffrentiated products duopoly model (with linear demand and constant marginal cost). In the first stage prot maximizing owners choose incentive schemes in order to induce their managers to exhibit a certain type of behavior. In the second stage the managers compete...

We consider a two stage diffrentiated products duopoly model (with linear demand and constant marginal cost). In the first stage prot maximizing owners choose incentive schemes in order to induce their managers to exhibit a certain type of behavior. In the second stage the managers compete...

In many competitive environments, players need to commit either to a specific goal they will reach at any cost or to the resources they are willing to spend in pursuit of that goal. We model this situation as a two-stage game where players may compete either by setting input and letting their...

Strategic trade theory has been criticized on the grounds that its predictions are overly sensitive to modeling assumptions. For example, Eaton and Grossman (1986) show that Brander and Spencer's (1985) seminal result - i.e., when firms compete by setting quantities the optimal policy involves...

We study the play of mutual interests games by satisficing decision makers. We show that, for a high enough inital aspiration level, and under certain assumptions of "tremble," there is a high probability (close to unity) of convergence to the Pareto dominant cooperative outcome. Simulations...

We present a model of brand-switching in which a consumer's impression of each brand is based on her memory of past consumption of this brand, and is stochastically updated whenever the brand is consumed. In the ordinal version of the model, consumer's memory is an ordering of the available...

We study the play of mutual interests games by satisficing decision makers. We show that, for a high enough inital aspiration level, and under certain assumptions of "tremble," there is a high probability (close to unity) of convergence to the Pareto dominant cooperative outcome. Simulations...

We present a model of brand-switching in which a consumer's impression of each brand is based on her memory of past consumption of this brand, and is stochastically updated whenever the brand is consumed. In the ordinal version of the model, consumer's memory is an ordering of the available...

Recently, we have experienced an emergence of comparative "Internet Shopping Agents" (ISAs) that allow consumers to costlessly search across many online retailers and buy at the lowest price. An ISA can be thought of as an institution that creates all or nothing type of competition in the...

Research examining the process of individual decision making over time is briefly reviewed. We focus on two major areas of work in choice dynamics: research that has examined how current choices are influenced by the history of previous choices, and newer work examining how choices may be made...