This article takes the following question as a point of departure: if one firm is more efficient than a rival does it have cause to initiate a price war? In order to study the question, we rely on a simple duopoly model and try to make especially heavy use of the concept of barrier to mobility....

In many developed countries attempts to reform physicians payment schemes have failed. To analyze some of the difficulties, this paper studies reforms of payment schemes in situations such as the physician agency, where the quality of the good produced is imperfectly observable by the payer. We...

In many conflicts, protagonists commit resources that will not be returned. These situations, which often lead to apparently wasteful escalation, are well captured by the following "all-pay" auction. Two bidders bid repeatedly for a prize until one drops out. As usual the prize goes to the...

We examine whether the liquidation of an option offers new opportunities of price manipulation manipulation on the underlying stock. In a call auction on the stock at the option exercise date, traders compete through demand schedules. The convexity of the option payoffs may induce equilibrium...