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lack structural information, which contrasts with common notions of fairness or "manners" in ultimatum bargaining (Camerer …
Persistent link: https://www.econbiz.de/10005125583
definitions, as well as the relationship to renegotiation-proof equilibrium. It is possible for repeated matching equilibria to be … completely distinct from renegotiation-proof equilibria, and even to be Pareto inefficient. …
Persistent link: https://www.econbiz.de/10005062336
strategically distort contracts to influence renegotiation outcomes. In this sequential common agency game, the initial contract … impacts elements of the renegotiation process: outside options (a `leverage' effect), and the beliefs of the new government …
Persistent link: https://www.econbiz.de/10005407570
-post inefficient and creates scope for renegotiation. If a renegotiation-stage is incorporated in the game then for some parameter …
Persistent link: https://www.econbiz.de/10005118635
The Coasean way to deal with the cooperation failure that is implicit in Pareto inefficiency is to remove or lessen the obstacles to cooperation through the attribution of property rights and the elimination or reduction of transaction costs. The relevance of this approach is however undermined...
Persistent link: https://www.econbiz.de/10005560990
This paper addresses the choice between different exit routes of venture capitalists for a project yielding a quality-improving product innovation. We explicitly introduce product market characteristics into the analysis with the aim to identify their effects on the optimal exit strategy and on...
Persistent link: https://www.econbiz.de/10005413189
This paper examines the justifications, history, and practice of regulation in the US telecommunications sector. We examine the impact of technological and regulatory change on market structure and business strategy. Among others, we discuss the emergence and decline of the telecom bubble, the...
Persistent link: https://www.econbiz.de/10005134493
proportional (Feldman (1999) and Ortmann (2000)) values. In NTU games, the Nash (1950) bargaining solution and the Owen- Maschler … equilibrium payoffs in variations of the bargaining game of Hart and Mas-Colell (1996). In these variations, players … bargaining with a monopolist, the monopolist obtains the entire surplus. …
Persistent link: https://www.econbiz.de/10005407563
We discuss the case of a monopolist of a base good in the presence of complementary goods provided either by it or by other firms. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of complementary goods, i.e., the extent of...
Persistent link: https://www.econbiz.de/10005412872
This paper looks into the application of the theory of “the persistence of profits” and how it can be used to model manufacturing industries in Colombia. By explaining where the theory of “persistence of profits” comes from, what it is, and what its determinants are brief descriptions of...
Persistent link: https://www.econbiz.de/10005412969