In this paper we analyze the problem of whether and/or when to replace a leader (agent) when no monetary rewards are available, and it is the leader's competence rather than effort that is being evaluated. The only decisions that the leader takes over time are whether to undertake risky but...

We prove that for any equilibrium of a (Bayesian) game, and any sequence of perturbations of that game, there exists a corresponding sequence of ex-ante ε-equilibria converging to the given equilibrium of the original game. We strengthen the conclusion to show that the approaching equilibria...

We study all-pay auctions (or wars of attrition), where the highest bidder wins an object, but all bidders pay their bids. We consider such auctions when two bidders alternate in raising their bids and where all aspects of the auction are common knowledge including bidders.valuations. We analyze...

Consider an auction in which $k$ identical objects are sold to $nk$ bidders who each have a value for one object which can have both private and common components to it. Private information concerning the common component of the object is not exogenously given, but rather endogenous and bidders...

We study all-pay auctions (or wars of attrition), where the highest bidder wins an object, but all bidders pay their bids. We consider such auctions when two bidders alternate in raising their bids and where all aspects of the auction are common knowledge including bidders' valuations. We...

Negotiation involves determining not only an agreement's price, but also its content, which typically has many aspects. We model such negotiations and provide conditions under which negotiation leads to efficient outcomes, even in the face of substantial asymmetric information regarding the...

We develop a theory of negotiation in which deals have multiple dimensions that can be bundled together. We use theory and experiments to show that in such settings efficient trade is possible even with substantial asymmetric information. The benefits of identifying areas of mutual gain guide...

How can a principal (employer or voter) induce an agent (worker or politician) to choose the 'right' actions if risky actions reveal the agent's decision-making competence and only dismissal can be used as an incentive instrument? The principal wishes to replace incompetent agents, but...

We prove that for any equilibrium of a (Bayesian) game, and any sequence of perturbations of that game, there exists a corresponding sequence of ex-ante ε-equilibria converging to the given equilibrium of the original game. We strengthen the conclusion to show that the approaching equilibria...

In a variety of contexts - ranging from public goods provision to information collection - a player's well-being depends on own action as well as on the actions taken by his or her neighbors. We provide a framework to analyze such strategic interactions when neighborhood structure, modeled in...