This paper analyzes the impact of international trade on the equilibrium rate of unemployment and economic welfare in a three-sector small open economy. While tradeables sectors have search-theoretic unemployment, the labor market of the nontradeables sector has no matching friction, which leads...

This paper analyzes communication in a price competition game using the level-$k$ theory of bounded rationality. The level-k analysis predicts prices to be higher with communication than without. Our experimental evidence lends support to the view that communication affects subjects in a way...

This paper analyzes the impact of international trade on the equilibrium rate of unemployment and economic welfare in a three-sector small open economy. While tradeables sectors have search-theoretic unemployment, the labor market of the nontradeables sector has no matching friction, which leads...

This paper analyzes communication in a price competition game using the level-$k$ theory of bounded rationality. The level-k analysis predicts prices to be higher with communication than without. Our experimental evidence lends support to the view that communication affects subjects in a way...