This paper is an attempt to provide a strategic rationale behind patent infringement agreements (PIA). We interpret such agreements as yet another form of cooperation in a non-cooperative environment. If the infringement probability is not 'too' low, firms would have incentive to sign a PIA...

Mismatches typically arise because of information problems in markets. This paper discusses the possibility of mismatching in partnerships focussing on strategic mismatches that cannot be explained by information problems. It is shown that due to market competition sometimes players can profit...

In a general setting of private information, the possibility (impossibility) theorem is said to be valid, if a balanced and ex post efficient mechanism exists (does not exist) which agents voluntarily participate at. Possibility and impossibility results are called robust if they hold for all...

Firms face the problem of choosing a debt maturity structure when financing an investment project. In addition, they have to decide which financing source to take. The aim of this article is firstly to give an explanation for the differing maturity choices by firms. As is shown below, the...

The paper develops a theoretical framework for studying conspicuous consumption. This is modeled as a device that signals the consumer's social status. Status is some function of the individual's rank in the wealth hierarchy. This approach makes it possible to distinguish between snob and...

In this paper we introduce markets for information about assets' payoffs in a two-period General Equilibrium Incomplete Markets Model. We consider asymmetric Walrasian equilibria with endogenous information allocations and analyze the interaction between demand for information and equilibrium...

We reconsider Tirole's framework of a three-tier principal-agent problem, in which he has shown that an incentive problem is caused by the possibility of monetary side payments between the agent and the middle -level supervisor. We consider the case where monetary transfers are not possible, but...