We provide a novel explanation as to why forming an alliance of buyers (or sellers) across separate markets can be advantageous when input prices are determined by bargaining. Our explanation helps to understand the prevalence of buyer cooperatives among small and medium-sized firms. Copyright...

We propose a solution for bargaining problems where coalitions are bargainers. The solution generalizes the Nash solution and allows one to interpret a coalition as an institutional player whose preferences are obtained by aggregating the preferences of the individual members. One implication of...

This dissertation is composed of three independent essays in economic theory. In the first essay, a pure exchange model where households face liquidity constraints because of the incomplete nature of the financial system is analyzed. Some properties of the equilibrium correspondence which maps...