This paper analyzes Influence Peddling with interaction between human capital transfer and collusion-building aspects in a model, in which each government official regulates multiple firms simultaneously. We show that (i) there exists an optimal division rule for collusion between a sequence of...

We analyze the marketing strategies of vertically differentiated firms when consumers observe their performance on corporate social responsibility (CSR) and firms simultaneously decide the price, advertising intensity and the investment in CSR. While advertising increases consumers' perception...

This paper investigates the possibility of signal jamming in games with multiple informed parties whose interests are conflicting. The possibility that signal jamming occurs in equilibrium depends on the observability of individual signals. Paradoxically, if the receiver can observe individual...

Abstract This paper provides a non-technical introduction to a procedure to find Perfect Bayesian equilibria (PBEs) in incomplete information games. Despite the rapidly expanding literature on industrial organization that uses PBE as its main solution concept, most undergraduate and graduate...

The paper presents an intuitive explanation of the Cho and Kreps’ (1987) Intuitive Criterion, and the Banks and Sobel’s (1987) Divinity Criterion (also referred as D1-Criterion). We provide multiple examples in which students can understand, step-by-step, the two main phases involved in these...

This paper introduces and analyzes sequentially stable outcomes in extensive games. An outcome ω is sequentially stable if for any ε 0, any version of the game where players make mistakes with small enough probability has a perfect ε-equilibrium with outcome close to ω. Unlike stable...

We study the structure of the rest points of signaling games and their dynamic behavior under selection-mutation dynamics by taking the case of three signals as our canonical example. Many rest points of the replicator dynamics of signaling games are not isolated and, therefore, not robust under...

This paper analyzes a reward system that uses a club good to promote recycling. In particular, we examine a context of incomplete information in which the administrator is unable to observe the resident's attitude towards recycling. The results suggest that despite the lack of information, the...

We propose a signaling model in which the central bank and firms receive information on cost-push shocks independently from each other. If the firms’ signals are rather unlikely to be informative, central banks should remain silent about their own private signals. If, however, firms are...

This half-semester course discusses decision theory and topics in game theory. We present models of individual decision-making under certainty and uncertainty. Topics include preference orderings, expected utility, risk, stochastic dominance, supermodularity, monotone comparative statics,...