This paper discusses the structure of the Internet connectivity market by focusing on the business relations of stakeholders involved in network services provision. We believe that the role of information asymmetry is critical when considering interconnection agreements, and should be taken into...

A model of dynamic risk sharing is constructed where agents meet pairwise and at random, and there is private information about endowments. Risk sharing is accomplished through dynamic contracts involving credit transactions, and through monetary exchange. A Friedman rule is optimal, and...

The mechanism by Hart and Mas-Colell (1996) for NTU games is generalized so that a coalition structure among players is taken into account. The new mechanism yields the Owen value for TU games with coalition structure as well as the consistent value (Maschler and Owen 1989, 1992) for NTU games...

We present a new methodology for studying the problem of labor contracting within a firm's boundaries where contracts provide only a minimal commitment to wages and employment. Given the peculiar contractual incompleteness of labor contracts, the resulting wages and profits under an interesting...

This paper presents a micro-model of knowledge creation through the interactions among a group of people. Our model incorporates two key aspects of the cooperative process of knowledge creation: (i) heterogeneity of people in their state of knowledge is essential for successful cooperation in...

This paper introduces a measure of uncertainty in the determination of the Shapley value, illustrates it with examples, and studies some of its properties. The introduced measure of uncertainty quantifies random variations in a player's marginal contribution during the bargaining process. The...

In this paper the Signalling approach to the explanation of wage differentials is analyzed both under a microeconomic and a macroeconomic viewpoint. Departuring from the classical Spence's model, the introduction of inequalities in accessing to education leads to redistributive effects among...

Geanakoplos defined a notion of bargaining set, and proved that his bargaining set is approximately competitive in large finite transferable utility exchange economies with smooth preferences. Shapley and Shubik showed that the Aumann-Davis-Maschler bargaining set is approximately competitive in...

A standard model for a game with complete information consists of a state space with partitions, and a specification of the strategies played in each state. We show that such models are inadequate for explaining players' behavior. We propose instead extended models in which it is possible to...