We investigate how imperfect competition affects the occurrence and the properties of endogenous, rational expectations business cycles in an overlapping generations model with constant returns to scale in production. The model has explicit product and labor markets all characterized by...

We report new results on a slightly generalized version of the classical learning process for games proposed by Brown (1951), and further analyzed by Robinson (1951), Miyasawa (1961) and Shapley (1964). the learning process rests on an exogenous prior distribution over strategies - a mixed...

Consider a labor market where the parties are able to write contracts contingent on the state of demand and productivity. If it is realistically assumed that the workers differ wrt. their reservation wages, then it becomes a natural presumption that firms on the market will offer several...

In a private ownership, production economy we show that under a smoothness assumption on production sets, an allocation involving unemployment and voluntary trades is always Pareto dominated by another attainable allocation where all the unemployed work (more).

The Choquet integral is an integral part of recent advances in decision theory involving non-additive measures. In this article we present two new axiomatic characterizations of this functional.

An uncertain and not just risky situation may be modeled using so-called belief functions assigning lower probabilities to events, that is, to sets of possible outcomes. In this paper we introduce an axiom of consistency by which we extend the von Neumann-Morgenstern expected utility theory to...

The paper is concerned with the implications of imperfect competition and endogenous determination of the number of firms for endogenous fluctuations in the simple overlapping generations model. If firms have market power on output markets and there is free entry, such that the number of firms...

The so-called Allais Paradox (Allais (1953)) has been interpreted as a violation of the independence axiom of Savage (1954). Considering the standard experiments performed this inference is questionable. Rather the paradoxical behavior represents evidence against the expected utility hypothesis...

This article analyzes the fictitious play process originally proposed for strategic form games by Brown (1951) and Robinson (1951). We interpret the process as a model of preplay thinking performed by players before acting in a one-shot game. This model is one of bounded rationality. We discuss...

Capacities (monotone, non-additive set functions) have been suggested to describe situations of uncertainty. We examine the question of how to define the product of two independent capacities. In particular, for the product of two belief functions (totally monotone capacities), there is a unique...