We study a political compromise founded on tacit cooperation. Two political parties must share a fixed pie in each of an infinite sequence of periode. In each pary the power has ultimate authority to devide the pie.

In this paper we study the problem of ecient production and allocation of indi- visible objects among a set of consumers. We assume that the agents' preferences depend on the bundle of objects and the quantity of money they consume. Further- more, we assume that preferences are quasilinear in...

[This item is a preserved copy. To view the original, visit http://econtheory.org/] In a general interdependent preference environment, we characterize when two payoff types can be distinguished by their rationalizable strategic choices without any prior knowledge of their beliefs and higher...