We consider a decentralized firm with one selling division and one buying division with asymmetric information about the cost functions of the two divisions. We show that there is a mechanism which achieves efficiency, truth-telling via dominant strategies, individual rationality, and achieves...

It is shown here that market crashes and bubbles can arise without external shocks. Sudden changes in behavior may be the result of endogenous information processing. Except for the daily observation of the market, there is no new information, no communication and no coordination between the...