, stochastically stable states may be inefficient, even when they induce a positive (suboptimal) level of investment. …

significant in a two-sided, one-buyer-many-seller model with complementarity. Our central result is that the severity of holdout … outside option of the buyer, and (c) the marginal contribution of the last seller. We find that although the accepted wisdom … that holdout is severe, goes through whenever either the buyer has no outside option, or the bargaining protocol is secret …

rationality, when one party can make a value-enhancing specific investment. This mechanism exhibits a trade-off between providing … investment incentives and inducing voluntary participation. We analyze how the trading area of the optimal mechanism is further … distorted in order to provide investment incentives. Applications of our main results and the underlying geometric analysis to …

We propose an equilibrium model of duopolistic dynamic pricing in which a buyer alternates between two sellers for … price offers over a finite time horizon. The game ends when the buyer accepts a price offer or the selling season is over … buyer is commonly known to be myopic; our analysis suggests that when she is known to be strategic price offers over the …

between a buyer and a seller and the first-price auction between two buyers (or two sellers). Combining results from those two …