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cooperative (or coalitional) stability of the whole industry cartel is the equidistance of firms’ products along the quality … spectrum. Without this property, and in presence of large quality differences, collusive agreements easily lose their stability …
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contractions. We illustrate the role of synergies in a Cournot oligopoly example with cost reducing R&D. …
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The paper shows that Perfect Bayesian equilibria need not be unique in the strategic communication game of Crawford and Sobel (1982). First, different equilibrium partitions of the state space can have equal cardinality, despite fixed prior beliefs. Hence, there can be different equilibrium...
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We consider multi-stage games, where at each stage, players receive private signals about past and current states, past actions and past signals, and choose actions. We fully characterize the distributions over actions, states, and signals that obtain in any (sequential) communication...
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