In this article, we consider how important developments in game theory have contributed to the theory of industrial organization. Our goal is not to survey the theory of industrial organization; rather, we consider the contribution of game theory through a careful discussion of a small number of...

We present a framework for understanding and interpreting reciprocity and nondiscrimination, the two principles that are the pillars of the multilateral trading system as embodied in GATT and its successor, the WTO. We show that GATT’s principle of reciprocity serves to neutralize the...

Despite the important role played by GATT in the world economy, economists have not developed a unified theoretical framework that interprets and evaluates the principles that form the foundation of GATT. Our purpose here is to propose such a framework. Working within a general equilibrium trade...

We analyze the Baron and Myerson (1982) model of regulation under the restriction that transfers are infeasible. Extending techniques from the delegation literature to incorporate an ex-post participation constraint, we report sufficient conditions under which optimal regulation takes the form...