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...

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...

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...

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...

We consider a continuous-time variant of the classical Economic Lot-Sizing (ELS) problem. In this model, the setup cost is a continuous function with lower bound $K_min 0$, the demand and holding costs are integrable functions of time and the replenishment decisions are not restricted to be...

This paper introduces two set valued Nash equilibrium refinements that are a natural generalization of the concept of stable set of equilibria introduced in Kohlberg and Mertens (1986) and satisfy all the properties defined in Mertens (1989). It also establishes a connection between Nash...

The plea bargaining procedure, namely the viability of a stage of bargaining between prosecutor and defendant in criminal suits, is analyzed in the framework of a two-sided incomlete information game.

A profit maximising auctioneer can provide a public good to a group of agents. Each group member has a private value for the good being provided to the group. We investigate an auction mechanism where the auctioneer provides the good to the group, only if the sum of their bids exceeds a reserve...

A profit-maximizing auctioneer can provide a public good to at most one of a number of groups of agents. The groups may have non-empty intersections. Each group member has a private value for the good being provided to the group. We investigate an auction mechanism where the auctioneer provides...