Consider a multi-stage game where each player has a compact choice set and payoffs are continuous in all such choices. Harris, Reny and Robson (1995) prove existence of a subgame perfect equilibrium as long as a public correlation device is added to each stage. They achieve this by showing that...

Consider a multi-stage game where each player has a compact choice set and payoffs are continuous in all such choices. Harris, Reny and Robson (1995) prove existence of a subgame perfect equilibrium as long as a public correlation device is added to each stage. They achieve this by showing that...

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...