We present a complete picture of the relationship between the existence of 0-optimal strategies and ε-optimal strategies, ε>0, in the classes of stationary, Markov and history dependent strategies. Copyright Springer-Verlag Berlin Heidelberg 2002

We model and analyze strategic interaction over time in a duopoly. Each period the firms independently and simultaneously take two sequential decisions. First, they decide whether or not to advertise, then they set prices for goods which are imperfect substitutes. Not only the own, but also the...

We model and analyze strategic interaction over time in a duopolis-tic market. Each period the firms independently and simultaneously choose whether to advertise or not. Advertising increases the own immediate sales, but may also cause an externality, e.g., increase or decrease the immediate...

Edgeworth price cycles refer to an asymmetric pattern of prices that result from a dynamic pricing equilibrium among competing oligopolists. The resulting time series takes on a sawtooth shape – many small price decreases interrupted only by occasional large price increases. Maskin and Tirole...

In a team project with significant complementarities between various players' individual tasks, news of early success by some encourages others to push ahead with their own tasks while lack of success has the opposite effect. This ex-post disparity in incentives created gives rise to two...

The simultaneous management, in an international context, of free-access renewable resources and transboundary pollution, is examined in a dynamic game framework. First-best outcomes under international cooperation are determined and compared to noncooperative outcomes when countries follow...