Price discrimination and rationing of low price customers can often be observed (viz. flight and theater tickets, sales of branded goods). We construct a monopoly model to explain this phenomenon. A firm has the option to charge a high price on a 'day 1', and a low price on a 'day 2', and ration...

It is an old ida in game theory that the justification of Nash equilibrium as a prediction of actual play in a game is that each player by imagining himself in the positions of his opponents will be able to figure out what these other players will play, and consequently the player himself will...

This paper presents a learning process which is a generalization of the method of fictitious play of Brown. If the learning process converges, the convergence point is a Nash equilibrium. We study 2 × 2 games. Here the process always converges. The relation between the initial prior, the weight...

In a general equilibrium macro model with wage bargaining, agents are divided into capitalists and workers. The markets for produced goods and money are competitive, but the wage rate is determined by negotiation between an employers' union and a trade union. Unions are supposed to be "long...

An overlapping generations, macro model where consumers are divided into workers and capitalists is analysed. In each period the wage rate is negotiated between an employers' union and a trade union. Other prices adjust competitively. The solution concept used is cooperative, the wage rate...

A multisectoral temporary general equilibrium macro model with wage bargaining is presented. In each sector agents are divided into capitalists and workers. The markets for produced goods and money are competitive, but the wage rate in a sector is determined by negotiation between an employers'...

We study the consequences of imperfect competition in a macro model with only one imperfection; that of labor market competition. Otherwise the model is ‘clean’; agents are optimizers, prices are endogenous, and expectations are rational. We show that, although imperfect competition in...

Consider a labor market where the parties are able to write contracts contingent on the state of demand and productivity. If it is realistically assumed that the workers differ wrt. their reservation wages, then it becomes a natural presumption that firms on the market will offer several...

In a private ownership, production economy we show that under a smoothness assumption on production sets, an allocation involving unemployment and voluntary trades is always Pareto dominated by another attainable allocation where all the unemployed work (more).

The Choquet integral is an integral part of recent advances in decision theory involving non-additive measures. In this article we present two new axiomatic characterizations of this functional.