This Article studies the durapolist, the durable-goods monopolist. Durapolists have long argued that, unlike perishable-goods monopolists, they face difficulties in exercising market power despite their monopolistic position. During the past thirty years, economists have extensively studied the...

In this paper we address the issue of multilateralism versus bilateralism in a situation where a home government's optimal policy is time-inconsistent and the time-consistent policy sub-optimal. Short-run production and wage rigidities create incentive for the government to surprise private...