In strictly competitive games, equilibrium mixed strategies are invariant to changes in the ultimate prizes. Dixit & Skeath (1999) argue that this seems counter-intuitive. We show that this invariance is robust to dropping the independence axiom, but is removed if we drop the reduction axiom.

We consider when homogeneous goods quantity competition models are payoff equivalent to heterogeneous goods models. When they are equivalent, changes in some cost parameters are equivalent to changes in some demand parameters. Going from homogeneous models to heteregeneous models is always...

This paper examines the impact of export orientation, import competition, foreign ownership and the rate of capital accumulation on the relative demand for skilled and unskilled labor in pre-crisis Indonesia.

I study the use of risk adjusters as a regulatory instrument for combatting cream-skimming incentives in a private health insurance market. It is assumed that insurance coverage is mandatory for all individuals, and that insurers must charge community-rated premiums - i.e., premiums independent...