Showing 1 - 10 of 212
We model firm pricing given consumers follow simple reservation price rules. Such reservation rules are rational when consumers are sufficiently impatient. The equilibrium exhibits price dispersion in pure strategies, with lower price firms earning higher profits. The range of price dispersion...
Persistent link: https://www.econbiz.de/10005042982
We examine patterns of acquiring non-native languages in a model with two linguistic communities with heterogeneous learning skills, where every individual faces the choice of self-learning the foreign language or acquiring it at a profit-maximizing linguistic school. We consider a one-school...
Persistent link: https://www.econbiz.de/10008836158
agents are farsighted, related stability concepts have been proposed. We design a simple network formation experiment to test …
Persistent link: https://www.econbiz.de/10009002080
experiment to test these extreme theories, but find evidence against both of them: the subjects are consistent with an …
Persistent link: https://www.econbiz.de/10010695722
We revisit and extend previous theoretical work on internationalization decisions by firms which are imperfectly informed on the state of the demand in the market into which they are planning to export or enter through foreign direct investment (FDI). The latter is a costly strategy mitigating...
Persistent link: https://www.econbiz.de/10010662641
This paper analyzes the role of retaliation in trade agreements. It shows that, in the presence of private information, retaliation can always be used to increase the welfare derived from such agreements by the participating governments. In particular, it is shown that retaliation is a necessary...
Persistent link: https://www.econbiz.de/10005008552
In this paper, I present results on communication and common knowledge in a group with a learning mechanism which is …
Persistent link: https://www.econbiz.de/10005634081
We study information revelation in markets with pairwise meetings. We focus on the one-sided case and perform a dynamic analysis of a constant entry flow model. The same question has been studied in an identical framework in Serrano and Yosha (1993) but they limit their analysis to the...
Persistent link: https://www.econbiz.de/10005065310
This paper provides a characterization of the consequences of the assumption that a decision maker with a given utility function is Choquet rational: She maximizes expected utility, but possibly with respect to non-additive beliefs, so that her preferences are represented by Choquet expected...
Persistent link: https://www.econbiz.de/10005478939
In this note we discuss two examples of approval voting games.
Persistent link: https://www.econbiz.de/10005478948