In this paper, the authors provide a rationale for why firms issue gift cards or vouchers. Mainly, issuing gift cards can be considered as a collusion-facilitating practice. A firm that issues gift cards can raise its price for several reasons. First, the discounted price by the face value of...

The authors develop a model of cheap talk with multiple speakers in the presence of network externalities so that their utility functions are increasing in the network size. They first show that if there is no noise in private information that each sender receives, the full information is...

We consider the dynamic network formation problem under the requirement that the whole network be connected and remain connected after q nodes are destroyed. We propose the concept of dynamic Cq-stability and characterize dynamic Cq-stable networks for any q≥0. Comparison with the outcome in...