Two homogeneous-good firms compete for a consumer’s unitary demand. The consumer is rationally inattentive and pays entropy-based information processing costs to learn about the firms’ offers. While trade is always inefficient if firms collude, we obtain efficiency under competition for a...

Games in which players aim to guess a fraction or multiple p of the average guess are known as guessing games or (p-)beauty contests. In this note, we derive a full characterization of the set of rationalizable strategies and the set of pure strategy Nash equilibria for such games as a function...