Whether vertical integration between a downstrean oligopolist and an upstream oligopolist is profitable for an integrated pair of firms is shown to depend on how one formulates the questions, on the number of firms in each oligopoly and on the type of interaction which is assumed between firms...

In existing papers on dynamic incentive contracts, the dynamic structure of the principal-agent relationship arises exclusively from the ability of the principal to learn about the hidden information over time. In this paper we deal with a different source of dynamics, which is considered...

We consider a class of differential games with transition equations that are homogeneous of degree one. For any game G with a discount rate r, consider a Markov perfect equilibrium (MPE) with strategies that are linear in the state variables. We show that the time paths of the control variables...

In this paper, we complement the work of Kemp and Shimomura (2002) by considering the case of many donors playing a dynamic non-cooperative game of foreign aid. We consider two models. Model 1 deals with the case where donor countries continually feel the warm glow of from the act of giving....

We show that, if relative wealth appears in the utility function, for example due to status seeking, then under certain conditions on the curvature of the utility function and the production function, the poor will eventually catch up with the rich. We give sufficient conditions for the final...

We investigate the effect of stock discovery on the profits of non-identical oligopolists. We show that a uniform addition to all stocks could harm firms that are originally larger than average. One conclusion that could be drawn from the results is that a new technology that leads to more...

We consider the class of differential games with transition dynamics and constraints that are homogeneous of degree one. We show that if the integrand of the objective function is homogeneous of degree , then best replies to linear homogeneous Markov strategies are linear homogeneous, and the...

We propose an overlapping generations economy where households care about relative consumption, the difference between their consumption and the consumption of their reference group. An individual's consumption is driven by the comparison of his lifetime income and the lifetime income of his...

We investigate investment behavior when there is asymmetry of information between owners (the principal) and managers (the agent). The model accepts the standard cost-of-adjustment model as a particular case and is directly compared with it. For all types, information asymmetry distorts the...

We show that, in a model with substitutability between capital and resources, the path of sustainable development may be non-smooth, and may exhibit the overshooting property: starting from low levels of capital and resources, the economy may accumulate capital beyond its steady-state level,...