This paper extends a discrete-choice model of differentiated product demand to consider consumer heterogeneity in dynamic games. Our approach applies to games involving both multi-product firms and static price competition.

Members of a shareholder meeting or legislative committee have greater or smaller voting power than meets the eye if the nucleolus of the induced majority game differs from the voting weight distribution. We establish a new sufficient condition for the weight and power distributions to be equal,...

We examine the link between pre-colonial statehood and contemporary regional African development, as reflected in satellite images on light density at night. We employ a variety of historical maps to capture the former. Our within-country analysis reveals a strong positive correlation between...

I consider repeated games with local monitoring: each player observes his neighbors’ moves only. Hence, monitoring is private and imperfect. Communication is private: each player can send different (costless) messages to different players. The solution concept is perfect Bayesian equilibrium....

We apply an indirect evolutionary approach to players’ perceived prize valuations in contests. Evolution in finite populations leads to preferences that overstate the prize’s material value and induce overexpenditure. We establish an equivalence between evolutionarily stable strategies and...

We consider preference evolution in a class of conflict models with finite populations. We show that whereas aggregate conflict effort is always the same in evolutionary equilibrium, larger populations have greater individual subjective costs of conflict effort.

We develop and characterize analytically an investment model in discrete time with a fixed adjustment cost not proportional to existing capital and complete irreversibility that reproduces the lumpiness of investment at the micro-level. In agreement with the empirical evidence, as a firm size...

We provide an alternative way to model sequential decision processes, which is consistent with the random utility maximization hypothesis and the existence of a representative agent. Our result is stated on terms of a direct utility representation, and it does not depend on parametric assumptions.