Beker, Pablo F.; Hernando-Veciana, Ángel - In: Journal of Economic Theory 155 (2015) C, pp. 234-261
We develop a model of bidding markets with financial constraints à la Che and Gale [15] in which two firms choose their budgets optimally and we extend it to a dynamic setting over an infinite horizon. We provide three main results for the case in which the exogenous cash-flow is not too large...