In this paper we examine the effects of limited liability on mortgage dynamics. While the literature has focused on default rates, renegotiation, or loan rates individually, we study them together as equilibrium outcomes of the strategic interaction between lenders and borrowers. We present a...

In this paper we examine the effects of limited liability on mortgage dynamics. While the literature has focused on default rates, renegotiation, or loan rates individually, we study them together as equilibrium outcomes of the strategic interaction between lenders and borrowers. We present a...

In this paper we examine the effects of limited liability on mortgage dynamics. While the literature has focused on default rates, renegotiation, or loan rates individually, we study them together as equilibrium outcomes of the strategic interaction between lenders and borrowers. We present a...

The paper investigates newsvendor problem for a dyadic supply chain in which both the supplier and the retailer are concerned with fairness. Nash bargaining solution is introduced as the fairness reference point and equilibrium results are derived. The effects of fairness concerns on optimal...

We consider bargaining problems with compact star-shaped choice sets arising from a class of economic bargaining environments. Convex or comprehensive (relative to the disagreement point) problems are star-shaped but not conversely. We characterize single-valued solutions satisfying the Nash...

The objective of our paper is to provide the reason why the headquarters voluntarily transfer its bargaining power to the business unit by stylizing an incomplete contract model. Our model shows that the equilibrium bargaining power selected by the headquarters is negatively correlated with the...

We consider bargaining problems with compact star-shaped choice sets arising from a class of economic bargaining environments. Convex or comprehensive (relative to the disagreement point) problems are star-shaped but not conversely. We characterize single-valued solutions satisfying the Nash...

Industries with significant scale economies or learning-by-doing may come to be dominated by a single firm. Economists have studied how likely this is to happen, and whether it is efficient, using models where buyers are price or quantity takers, even though these industries are often also...

How homes sell matters for housing price dynamics. Auction prices forecast better, display less momentum and help forecast economic activity much better than negotiated prices. This is consistent with mechanisms transmitting buyer vs. seller shocks to prices differently and, in light of auction...