I study how firms actually compete in nonlinear tariffs by analyzingwhether the incumbent and entrant's decisions to offer a given number oftariff options are interrelated. The goal is to shed some light on thosedynamic and strategic aspects of tariff menus that are currently ignoredby...

This paper provides an explanation for an important institutional feature of staggered time-dependent adjustment rules assumed in a number of macroeconomic models. It identifies strategic complementarity as the crucial factor leading to nonsynchronized decisions in a game-theoretic framework....

We present a model of neighborhood effects in wage payment delays. Positive feedback arises because each employer’s arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic complementarity in the practice. The model is estimated on...