We investigate a repeated Cournot duopoly with strictly convex cost functions. In an example the set of Weakly Renegotiation Proof Equilibrium payoffs shrinks towards the joint profit maximizing payoff point as marginal costs are made to rise more rapidly.

In a private ownership, production economy we show that under a smoothness assumption on production sets, an allocation involving unemployment and voluntary trades is always Pareto dominated by another attainable allocation where all the unemployed work (more).

This paper studies the relation between political polarization and delegation of stabilization policy. There is asymmetric information about how the economy works: unlike voters, two political parties know the variance of an employment shock. Prior to an election each party proposes a central...

If there is unemployment no matter how low the wage rate becomes, one speaks of involuntary unemployment. This phenomenon has been shown to arise in a variety of temporary or atemporal macro models with imperfect competition in the goods markets. In this paper, the author investigates whether...

In this note it is shown that if the Pareto frontier of the one-shot game is strictly concave and contains the Pareto frontier of the set of weakly renegotiation-proof equilibrium average payoffs, and if there is a player who always has a short-run incentive to deviate from any action pair...

This paper investigates the effects on production and employment of an introduction of profit sharing in an economy initially stuck in unemployment. The economy considered is divided into many small production sectors. in each sector the wage rate is negotiated between an employers' union and a...

This paper analyses a dynamic general equilibrium macro model where consumers are divided into workers and capitalists. Goods and money markets are assumed to be competitive, whereas the wage rate is determined by negotiation between a trade union and an employer's union. Unions know the...

Price discrimination and rationing of low price customers can often be observed (viz. flight and theater tickets, sales of branded goods). We construct a monopoly model to explain this phenomenon. A firm has the option to charge a high price on a 'day 1', and a low price on a 'day 2', and ration...

In a general equilibrium macro model with wage bargaining, agents are divided into capitalists and workers. The markets for produced goods and money are competitive, but the wage rate is determined by negotiation between an employers' union and a trade union. Unions are supposed to be "long...

Migration gives rise to an externality across districts that issue local public debt. Unless taxation is entirely in the form of property taxes, local debt is not fully capitalized in property values (even with a competitive land market) and each district over-accumulates debt. A common debt...