We formulate and solve a costly multi-unit search problem for the optimal selling of a stock of goods. Our showcase application is an inventory liquidation problem with fixed holding costs, such as warehousing, salaries or floor planning. A seller faces a stream of buyers periodically arriving...

We model how individual preferences are shaped by strategic reciprocity choices. Our model accounts for heterogeneous players — with intrinsic altruistic, selfish or spiteful preferences — who randomly engage in short-run, as well as long-run, pair- wise interactions. To disentangle the...