We analyze collusion in an infinitely repeated version of a standard auction with a continuum of types. Because of the lack of efficiency results in this setting the literature has focused on determining and comparing benchmarks on how well bidders can collude. Aoyagi (2003) has shown that the...

We present an experimental game in the p-beauty framework. Building on the definitions of boundary and interior equilibria, we distinguish between ‘speed of convergence towards the game-theoretic equilibrium' and ‘deviations of the guesses from the game-theoretic equilibrium'. In contrast to...

In this paper we prove the impossibility of stability rules that satisfy a concept weaker than nonbossiness. Stability and nonbossiness are essential to matching theory. However, Kojima Fuhito(2010) shows that a matching mechanism that is both stable and nonbossy dose not exist. We define a new...

In this paper, we report the results of two experiments, each comprising two designs (a prisoner dilemma and a third party punishment; Fehr et al. 2004). The experiments were conducted with a sample of university students and a sample of Camorra prison inmates, both coming from the same Italian...

Condorcet's paradox is one of the most prominent results in social choice theory. It says that there may not exist any alternative that a net majority prefers over every other alternative. When outcomes need not be deterministic alternatives, we show that a similar paradox still exists even if...

In this article, we use a simple mean-variance set up, where two symmetric Â…firms are competing in quantities, and investigate the impact of demand variability on the stability of collusion.

Empirical research on cable industry prices demonstrates that, all else equal, cable operators with highly clustered systems generally charge higher prices than unclustered cable companies. One factor that explains this outcome is the deterrent effect that clustering has on overbuilders. All...

Here we propose a weighted extension of the equal allocation of nonseparable costs (EANSC). Further, an axiomatization is also proposed by applying consistency.

Experimental evidence indicates that free riders and strongly reciprocal papers coexist in the public goods game framework. By means of an evolutionary analysis, we provide an endogenization of this behavioral regularity.

A multilateral assignment market with buyers and a number of different types of firms can be modeled by a multi-sided assignment game. We prove that core allocations of the latter are in a one-to-one correspondence with competitive prices of the former, where the notion of competitive price...