This paper proves that Rubinstein's bargaining theory is completely wrong. Using the Edgeworth box to solve the bargaining problem requires two pies. A reduced Edgeworth box may contain one pie, but it requires someone smarter than Ricardo to work out a common terms of trade. Rubinstein's...

This paper proves that Clarke's mechanism to reveal consumer's demand is nothing but a tautology. He added up the parts to form the sum, and used the sum to find the parts. The so-called Clarke tax is nothing but smoke to distract our attention

This paper proves that the traditional wisdom of robbing the rich for the poor will end up with just the opposite result. Evidences are given to confirm that such unjust re-distribution is happening in the real world. Welfare economists should be fired: to be replaced by wealth economists

This paper works out an Excel Spreadsheet to help play Hotelling's spatial competition game. It allows different commuting cost, and even quadratic cost function. It produces the demand curves and the equilibrium. It helps avoid misunderstanding around the spatial competition model, and offer...

This paper derives the origin of Vickrey's second price auction theory, and explains why some auctioneers adopt such method, while most others do not. This paper also confirms that no second-price can help reveal the true demand

This paper proves that Nash's exchange theory leads to inefficiency. Instead of coming to a vertex, the exchange leads to polarization. This paper questions Nash's method of exchange and suspects that his theory is not about bargaining

Nash (1950) proposes a bargaining theory. This paper proves that Nash's theory leads to unfair result. The reason for the wrong conclusion is his use of utility. This paper then recommends the old Jewish method described in Talmud for fairer solution

Bargaining is about how to split a pie between two persons. This paper reveals the inconsistency of the Rubinstein (1982) bargaining model. Its algebra is not correctly reflected by his Edgeworth box. Although an Edgeworth box guarantees complete exhaustion of the resource, it contains two pies....

Vickrey advocates charging the winner of an auction only the second highest price. This paper proves that he has betrayed his own theory to come to such a wrong conclusion. This paper also points out the harmful consequences inflicted by his wrong auction method, and accuses him of destroying...

This paper proves that both the Maximin and the Nash Equilibrium offer only limited solutions to games. Based on Nash's reasoning, this paper works out a procedure to play game, any game. By playing, games are solved. Some games have one equilibrium solution, some have alternating two, some have...