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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
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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
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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
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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
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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
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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
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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
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Equilibrium Price Dispersion and Rigidity: A New Monetarist Approach
Head, Allen; Liu, Lucy Qian; Menzio, Guido; Wright, Randall - Department of Economics, University of Pennsylvania - 2010
Why do some sellers set prices in nominal terms that do not respond to changes in the aggregate price level? In many models, prices are sticky by assumption. Here it is a result. We use search theory, with two consequences: prices are set in dollars since money is the medium of exchange; and...
Persistent link: https://www.econbiz.de/10008672485
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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
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Identification and Estimation of Games with Incomplete Information Using Excluded Regressors, Second Version
Lewbel, Arthur; Tang, Xun - Department of Economics, University of Pennsylvania - 2010
We show nonparametric point identification of static binary games with incomplete information, using excluded regressors. An excluded regressor for player ¡ is a state variable that does not affect other players’ utility and is additively separable from other components in ¡’s payoff. When...
Persistent link: https://www.econbiz.de/10010544668