In a 2007 paper, "A global game with strategic substitutes and complements", by Karp, L., I.H. Lee, and R. Mason, Games and Economic Behavior, 60(1), 155-175, an argument is made to show existence of Bayesian-Nash equilibrim in global games that may include both strategic substitutes and...

In a 2007 paper, “A global game with strategic substitutes and complements”, by Karp, L., I.H. Lee, and R. Mason, Games and Economic Behavior, 60(1), 155-175, an argument is made to show existence of Bayesian-Nash equilibrim in global games that may include both strategic substitutes and...

This paper analyzes the learning and stability of mixed strategy Nash equilibria in games of strategic substi- tutes (GSS), complementing recent work done in the case of strategic complements (GSC). Mixed strategies in GSS are of particular interest because it is well known that such games need...

Global games methods are aimed at resolving issues of multiplicity of equilibria and coordination failure that arise in game theoretic models by relaxing common knowledge assumptions about an underlying parameter. These methods have recently received a lot of attention when the underlying...

Global games methods are aimed at resolving issues of multiplicity of equilibria and coordination failure that arise in game theoretic models by relaxing common knowledge assumptions about an underlying parameter. These methods have recently received a lot of attention when the underlying...

This paper constructs a model of an exchange economy in which bankruptcy arises in a manner similar to what we observe. Compared to related models, this model is a more realistic representation of some markets in which intertemporal assets are traded. Using standard and natural assumptions, it...

This paper uses novel data on the performance of loan pools underlying asset backed securities to estimate a competing risks model of default and prepayment on subprime automobile loans. We find that prepayment rates increase rapidly with loan age but are not affected by prevailing market...

A partial test for strategic behavior in bankruptcy filing may be formulated by testing whether consumers manipulate their debt and filing decision jointly, or not: that is, testing for endogeneity of financial benefit and the bankruptcy filing decision. Using joint maximum likelihood estimation...

Many questions of interest can be stated in terms of monotone comparative statics: if a parameter of a constrained optimization problem “increases,” when does its solution “increase” as well. This paper studies monotone comparative statics in different directions in finite-dimensional...