We study the selection of an equilibrium for coordination games: symmetric, simultaneous move, complete information games which have multiple, Pareto-ranked Nash equilibria. We design and experiment to explore regularities in the observed outcomes for this class of games. With replication, we...

This paper attempts to revive in the sales maximization hypothesis by providing that there are conditions under which such an objective can be profitable. Competition is modelled as a two-stage game. In the first stage owners write contracts with managers instructing them on whether to maximize...

This paper studies the response of a dominant domestic oligopoly to the reduction in the rate of a protective tariff. The issue here is whether the domestic market performance is improved through a movement toward free trade alone. Put another way, is free trade always a substitute for...

This paper examines two questions related to merger policy in an economy moving toward free trade. The first asks whether the enhanced competition from foreign firms that comes with lower tariffs will always serve to reduce the market power effects of domestic mergers. While mergers involving...

Using a simple two-period model, this paper attempts to explain certain interesting intertemporal properties of product warranties. Specifically, why does coverage generally fall over time and why is the typical warranty's life so much shorter than the expected life of the product it covers? We...