Narrow search
Showing 1 - 10 of 88
Cover Image
Do Vertical Mergers Facilitate Upstream Collusion? Second Version
Nocke, Volker; White, Lucy - Department of Economics, University of Pennsylvania - 2003
We investigate the impact of vertical mergers on upstream firms' ability to sustain tacit collusion in a repeated game …. We identify several effects and show that the net effect of vertical integration is to facilitate collusion. Most … importantly, vertical mergers facilitate collusion through the operation of an outlets effect: cheating unintegrated firms can no …
Persistent link: https://www.econbiz.de/10005061911
Cover Image
Modeling Unawareness in Arbitrary State Spaces
Li, Jing - Department of Economics, University of Pennsylvania - 2008
I develop a set-theoretic model of unawareness without making any structural assumptions on the underlying state space. Unawareness is characterized as a measurability constraint that results in players' reasoning about a “coarse" subjective algebra of events. The model is shown to be...
Persistent link: https://www.econbiz.de/10005102103
Cover Image
Information Structures with Unawareness
Li, Jing - Department of Economics, University of Pennsylvania - 2008
I construct a state space model with unawareness following Aumann (1976). Dekel, Lipman and Rustichini (1998a) show that standard state space models are incapable of representing unawareness. The model circumvents the impossibility result by endowing the agent with a subjective state space that...
Persistent link: https://www.econbiz.de/10005102108
Cover Image
Interactive Knowledge with Unawareness
Li, Jing - Department of Economics, University of Pennsylvania - 2008
This paper extends Li (2008b) to the multi-agent environment, where players reason about each other’s awareness as well as knowledge, subject to their own awareness constraints. I characterize the interactive knowledge hierarchies under unawareness, which significantly differ from those in the...
Persistent link: https://www.econbiz.de/10005102115
Cover Image
A Note on Unawareness and Zero Probability
Li, Jing - Department of Economics, University of Pennsylvania - 2008
I study how choice behavior given unawareness of an event differs from choice behavior given subjective belief of zero probability on that event. Depending on different types of unawareness the decision-maker suffers, behavior under unawareness is either incomparable with that under zero...
Persistent link: https://www.econbiz.de/10005126692
Cover Image
Coordination and Social Learning
Huang, Chong - Department of Economics, University of Pennsylvania - 2011
This paper studies the interaction between coordination and social learning in a dynamic regime change game. Social learning provides public information to which players overreact due to the coordination motive. So coordination affects the aggregation of private signals through players' optimal...
Persistent link: https://www.econbiz.de/10009188957
Cover Image
Equilibrium Price Dispersion Across and Within Stores
Menzio, Guido; Trachter, Nicholas - Department of Economics, University of Pennsylvania - 2015
We develop a search-theoretic model of the product market that generates price dispersion across and within stores. Buyers differ with respect to their ability to shop around, both at different stores and at different times. The fact that some buyers can shop from only one seller while others...
Persistent link: https://www.econbiz.de/10011122482
Cover Image
Buying Locally
Mailath, George J.; Postlewaite, Andrew; Samuelson, Larry - Department of Economics, University of Pennsylvania - 2015
“Buy local” arrangements encourage members of a community or group to patronize one another rather than the external economy. They range from formal mechanisms such as local currencies to informal “I’ll buy from you if you buy from me” arrangements, and are often championed on social...
Persistent link: https://www.econbiz.de/10011204503
Cover Image
Large and Small Sellers: A Theory of Equilibrium Price Dispersion with Sequential Search
Menzio, Guido; Trachter, Nicholas - Department of Economics, University of Pennsylvania - 2014
The paper studies equilibrium pricing in a product market for an indivisible good where buyers search for sellers. Buyers search sequentially for sellers, but do not meet every sellers with the same probability. Specifically, a fraction of the buyers’ meetings lead to one particular large...
Persistent link: https://www.econbiz.de/10010822889
Cover Image
Shopping Externalities and Self-Fulfilling Unemployment Fluctuations
Kaplan, Greg; Menzio, Guido - Department of Economics, University of Pennsylvania - 2012
We propose a novel theory of self-fulfilling fluctuations in the labor market. A firm employing an additional worker generates positive externalities on other firms, because employed workers have more income to spend and have less time to shop for low prices than unemployed workers. We quantify...
Persistent link: https://www.econbiz.de/10010822899