We consider the allocation of goods in exchange economies with a finite number of agents who may have private information about their preferences. In such a setting, standard allocation rules such as Walrasian equilibria or rational expectations equilibria are not compatible with individual...

We study social choice correspondences which can be implemented in undominated Nash equilibrium by bounded mechanisms. (An undominated Nash equilibrium is a Nash equilibrium in which no agent uses a weakly dominated strategy. A mechanism is bounded if every dominated strategy is dominated by an...

We examine price formation in a simple static model with asymmetric information, a countable number of risk neutral traders and without noise traders. Prices can exhibit excess volatility (the variance of prices exceeds the variance of dividends), even in such a simple model. More generally, we...

For some solution concepts, such as dominant strategies, Nash equilibrium, and undominated strategies, only dictatorial social choice functions are implementable on a full domain of preferences with at least three alternatives. For other solution concepts, such as the iterative removal of weakly...

Exploiting small uncertainties on the part of opponents, players in long, finitely repeated games can maintain false reputations that lead to a large variety of equilibrium outcomes. Even cooperation in a finitely repeated prisoners' dilemma is obtainable. Can such false reputations be maintined...

We examine the consequences of vote buying, assuming this practice were al- lowed and free of stigma. Two parties compete in a binary election and may purchase votes in a sequential bidding game via up-front binding payments and/or campaign promises (platforms) that are contingent upon the...

We examine the consequences of lobbying and vote buying, assuming this prac- tice were allowed and free of stigma. Two "lobbyists" compete for the votes of legislators by offering up-front payments to the legislators in exchange for their votes. We analyze how the lobbyists' budget constraints...

Consider a probability distribution governing the evolution of a descrete-time stochastic process. Such a distribution may be represented as a convex combination of more elementary probability measures, with the interpretation of a two-stage Bayesian procedure. In the first stage, one of the...