This work takes a closer look on the predominant assumption in usual lemon market models of having finitely many or even only two different levels of quality. We model a situation which is close to the classical monopolistic setting but admits an interval of possible quality values....

Most of the existing theories of international cooperation implicitly adopted the assumption that defection or cheating are easily detectable, either because the behavior of other actors is directly observable, or the payoffs received by the relevant actors are perfect indicators of past...