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...

If an exhaustible resource stock is viewed as a capital good, one obtains in the Hotelling model that economic depreciation of the stock equals aggregate rent. When extraction costs depend on the stock of resource remaining, depreciation is less than aggregate rent. These results permit us to...

This paper models the linkage between a country's national security and the defense spending of its allies and adversaries. The cost of an arms race is introduced into the alliance public good framework of Olson and Zeckhauser. Contrary to their presumption, for a cooperative treaty to increase...

This paper looks at the joint determination of international indebtedness and capital accumulation in a two-country model. National rates of time preference are endogenous, and adjust along an optimal path to come into equality with one another in the steady state. A country's level of...

The incentive to advertise is a consequence of monopoly power, for there is nothing to gain from advertising by a firm that can sell its entire output at an invariant market price. Advertising is expenditure by a firm to increase the elasticity of demand for its product or to shift the demand...

The paper investigates whether there are variants of the permanent income model which are consistent with quarterly, seasonally unadjusted post-war Canadian data. The model estimates about 20 percent of consumers follow the rule of thumb of consuming their current income. This suggests a large...

We contrast the supply condition governing the rate of extraction of durable exhaustible resources such as gold with rates of extraction of non-durable exhaustible resources such as oil. In two simple general equilibrium models, Hotelling's rule governs supply for non-durable resources, but a...

This note shows that the observation of low real interest rates during periods of high temporary government purchases, such as wars, can be reconciled with the neoclassical growth model extended to allow for endogenous time preference. Temporary increases in government purchases lead to a fall...

This paper develops a model of strategic behaviour in continuous time games of complete information. This model bridges the gap between the differential formulation of a continuous time game and the procedure of taking limits with respect to discrete time games. The model admits a large class of...

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...