The paper offers a concise proof of a rule attributed to Alfred Marshall concerning the own-price elasticity of a firm's derived factor demand. The derivation uses the implicit function theorem.

This paper explores the consequences of assuming that agents may be unaware of certain outcomes in the state space. One way to construct such a setting is from what we call awareness types. When agents possess limited awareness of the state space, information may be delusive, but agents can...

We show that strictly competitive, finite games of perfect information that may end in one of three possible ways can be solved by applying only two rounds of elimination of dominated strategies.

In many developed countries, an essential part of a bank's capital requirement may be directly tied to a risk figure taken from the bank's own risk model. When capital is scarce, this creates a conflict of interests because the bank's management may want to manipulate its internal risk model in...