With the continuing growth of the use of the Internet for business purposes, the consequences of a possible cyber attack that could create a large scale outage of long time duration becomes a more and more serious economic issue. In this paper, we construct a game-theoretic model that addresses...

We consider a general model of dynamic common agency with symmetric information. We focus on Markov perfect equilibria and characterize the equilibrium set for a refinement of the Markov perfect equilibria. Particular attention is given to the existence of a marginal contribution equilibrium...

This paper analyzes the entry of new products into vertically differentiated markets where an entrant and an incumbent compete in quantities. The value of the new product is initially uncertain and new information is generated through purchases in the market. We derive the (unique) Markov...

This paper develops a model of dynamic advertising competition, and applies it to the problem of optimal advertising scheduling through time. In many industries we observe advertising “pulsing”, whereby firms systematically switch advertising on and off at a high-frequency. Hence, we observe...

I develop a dynamic model of social conflict whereby manifest grievances of the poor generate the incentive of taking over political power violently. Rebellion can be an equilibrium outcome depending on the level of preexisting inequality between the poor and the ruling elite, the relative...

The paper analyzes a negotiation between two players (e.g. finns in duopoly wishing to fonn a cartel or countries involved in a trade dispute) about levels of their activities that may be hannful to the other player. Negotiation takes place in discrete time, with alternating offers of the two...

This paper studies a game of strategic experimentation with two-armed bandits whose risky arm might yield a payoff only after some exponentially distributed random time. Because of free-riding, there is an inefficiently low level of experimentation in any equilibrium where the players use...

This Paper studies a game of strategic experimentation with two-armed bandits whose risky arm might yield a pay-off only after some exponentially distributed random time. Because of free-riding, there is an inefficiently low level of experimentation in any equilibrium where the players use...