This Paper analyses strategic bargaining between two agents each of whom negotiates on behalf of a principal. The principals face uncertainty about the bargaining skills of their agents as measured by the agents' abilities to assess the opponent's preferences. Agents then have an incentive to...

This paper examines how the introduction of a direct trade alternative for buyers and sellers affects competition among middlemen. Direct trade makes middlemen’s supply and demand functions depend on both bid and ask prices, a feature we term interdependence. A simple model is used to...

This paper develops a theoretical model of how bookmakers’ odds are determined, given varying levels of inside information on the part of punters. Bookmakers’ attitudes towards risk and the degree of competition between them will influence bookmaker behaviour. Using a data set of 1696 races...

The existence of behavioral biases does have a number of implications for the way in which markets work. Matthew Bennett, John Fingleton, Amelia Fletcher, Liz Hurley, & David Ruck, U.K. Office of Fair Trading

This article studies strategic bargaining in which a seller and a buyer are each represented by an agent. Potential agents differ in their ability to obtain information about the other party's reservation price; neither principal knows the other's reservation price or her agent's type. Agents are...

This paper analyzes how intermediation by a middleman who buys from sellers and sells to buyers is affected if direct trade between buyers and sellers becomes possible. Without coordination among sellers and buyers, disintermediation may not occur when it would be welfare-improving. With such...

At the OFT, we pursue our missionâ€â€to make markets work well for consumersâ€â€through a mixture of enforcement and business education. John Fingleton (OFT)

Regulating Utilities and Promoting Competition continues the series of annual books, published in association with the Institute of Economic Affairs and the London Business School, which critically review the state of utility regulation and competition policy.