In this paper we study the effect of information on the occurrence of intentional price wars on the equilibrium path. An episode of low prices is an intentional price war if it follows a period of high prices which was ended intentionally by one of the firms in the market (the price war leader)....

We show that synergies enhance bidding competition to such an extent that they are a curse rather than a blessing for the bidders; they may even induce serious bankruptcy problems.

This paper studies the sales of a single indivisible object where bidders have continuous valuations. In Grigorieva et al. [13] it was shown that, in this setting, query auctions necessarily allocate inefficiently in equilibrium. In this paper we propose a new sequential auction, called the...

The class of bargaining solutions that are defined on the domain of finite sets of alternatives and satisfy Weak Pareto Optimality (WPO), Independence of Irrelevant Alternatives (IIA) and Covariance (COV), is characterized. These solutions select from the set of maximizers of a nonsymmetric Nash...

Incomplete preferences over lotteries on a ¯nite set of alternatives satisfying, besides independence and continuity, a property called bad outcome aversion are considered. These preferences are characterized in terms of their speci¯c multi-expected utility representations (cf. Dubra et al.,...

We study a framework where two duopolists compete repeatedly in prices and where chosen prices potentially affect future market shares, but certainly do not affect current sales. This assumption of consumer inertia causes (noncooperative) coordination on high prices only to be possible as an...

In this paper we analyze the performance of a recently proposed sequential auction, called the c-bisection auction, that can be used for a sale of a single indivisible object. We discuss the running time and the e±ciency in the ex-post equilibrium of the auction. We show that by changing the...

In this paper we present a generalization of the Shapley-Ichiishi result for convex games to the class of all exact games. Then we discuss two applications to the class of convex games. First we show that it can indeed be used to give an alternative proof of the Shapley-Ichiishi result. Secondly...

We study a framework where two duopolists compete repeatedly in prices and where cho-sen prices potentially affect future market shares, but certainly do not affect current sales.This assumption of consumer inertia causes (noncooperative) coordination on high pricesonly to be possible as an...

The classical bankruptcy problem (O''Neill, 1982) is extended by assuming that the agents have non-homogenous preferences over several estates. A special case is the one in which there are finitely many estates and the agents have homogenous preferences, i.e., constant utilities, per estate. In...