Based on a non cooperative model with asymmetric information tested by means of a laboratory experiment, this paper examines the influence of a negotiation outcome on the demand behavior in subsequent negotiations. While the assumption of inflationary wage claims is rejected by the data, a...

This paper investigates the literature describing the microeconomic behaviour of agents using storage and future contracts, depending on the nature of their information and on the nature of competition. In the price stabilisation theory, even if it may have ambiguous effects on the distribution...

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An ‘efficiency wage’ model developed for Western economies is reinterpreted in the context of Stalin’s Russia, with imprisonment – not unemployment – acting as a ‘worker discipline device’. The threat of imprisonment allows the state to pay a lower wage outside the Gulag than...

I consider bilateral trade between a seller and a buyer with private valuations. The seller makes a take-it-or-leave-it price offer. If the seller observes the buyerʼs valuation (symmetric information), bilateral trade is trivially efficient. If the seller cannot observe the valuation...

This paper analyzes bilateral contracting in an environment with contractual incompleteness and asymmetric information. One party (the seller) makes an unverifiable quality choice and the other party (the buyer) has private information about its valuation. A simple deterministic exit option...

This paper presents a simple system for efficient regulation under asymmetric information. Each firm's income is controlled by a tax that depends on the firm's own output and on a parameter construed as a share permit. These “shares of total expected output” lower a firm's tax burden and are...

In this paper, after surveying short-term two-echelon supply channel coordination methods, we present an extended version of the newsvendor model in which the supplier has to fulfil all demand of the customer, even if this calls for an additional setup of production. Given uncertain demand...

Humans often lie strategically. We study this problem in an ultimatum game with an informed proposer and an uninformed responder, where the former can send an unverifiable statement about his endowment. A simple message game with heterogenous players with respect to lying costs shows that in...

We study the possibility of peace when two countries fight a war over the ownership of a resource. War is always the outcome of the game played by rational countries – under complete or asymmetric information – when there is no pre-established distribution of the resource among countries....