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 comment refers to a paper by Grout published in the ECONOMIC JOURNAL (1988). Grout's paper is concerned with the impact of employee shares on the net income of the employees. Analysing a specific game he concludes that "workers in aggregate do not gain from share ownership". This conclusion...

We examine the evolutionary foundations of common equilibrium refinement ideas for extensive form games, such as backward and forward induction, by examining the limiting outcome of an evolutionary process driven by stochastic learning and (rare) mutations. We show that the limiting outcome in a...

This paper presents an analysis of a recently invented new form of price regulation. An index of prices of monopolistically supplied goods must never exceed the retail price index minus X. The main results of the chapter are as follows: (i) If the constant X is politically chosen, price-cap...

This paper deals with price--cap regulation of a monopolistic distribution grid which sells a license to some retailer. The sale of the license is a long--term incomplete contract. Both the grid and the licensee engage in relationship--specific investments before the value and costs of the...