This paper provides a counterexample to some recent results of Grout (1984) which state that in a bargaining situation without binding wage agreements, the capital stock will be biased downwards. In a general equilibrium setting, this result may be reversed. The argument is built around a simple...

Within a hierarchical firm structure, the paper details how the composition of a worker's skills and the (non) observability of a worker's ability affect wage and promotion paths. Promotion takes place over time and is not efficient, as employers seek to exploit their inside information about a...

This paper develops a general repeated game model over arbitrary time domain (which includes continuous time behaviour). A player is committed at any point in time to history independent behaviour for a positive length of time. The length of time of commitment depends on the way the history...

The implications of demand and cost fluctuations, both anticipated and unanticipated, for the international distribution of industrial excess capacity are explored. Three partial equilibrium models of excess capacity and contingent protection policies which are correlated with distress on the...

This paper introduces a general framework for the discussion of renegotiation in repeated games, provides a new concept of "renegotiation proof" equilibrium, and shows how this model clarifies and unifies existing work in this area. The procedure involves restricting axiomatically the class of...

The Canada America Free Trade Agreement is to be phased in over a ten year period, which began in January 1, 1989. The most significant element is the phased-in reduction of tariffs on bilateral trade, plus the removal of some significant non-tariff barriers. This paper reports some estimates of...