Tying contracts are well-known for their anti-competitive potential. This paper questions their negative image by showing that tying contracts can be necessary to implement price signals which overcome problems of asymmetric information in the introductory phase of a new durable product. The...

This paper deals with a privatized firm facing potential market entry. The firm has inherited excess capacity from its public past. The players have asymmetric costs. Only the entrant must install new capacity, which incurs positive capacity installation costs. The paper considers the subgame...

The core of a linear assignment problem contains in general a continuum of allocations. A model is presented where the core shrinks to a unique solution as the population grows.