This paper examines the sets of strategies that are stable for a stochastic process in cheap talk 2×2 coordination games. Relaxing the rationality condition assumed in previous literature and instead assuming what we call adaptive conjecture, we show that efficient outcomes are more difficult...

We consider the dynamic trading strategies that minimize the expected cost of trading a large block of securities over a fixed finite number of periods. We obtain the result in which the institutional investor sells more stocks in early stages when we introduce the conjectures about the others'...

We consider the dynamic trading strategies that minimize the expected cost of trading a large block of securities over a fixed finite number of periods and the endogenously determined price impact function that yields the execution prices for individual trades. This analysis is novel in that it...