We analyze a market where the consumer must rely on expers to identify the correct type of service. Medical services, repair services and various types of consulting and advisory services belong to this broad category. Our focus is on situations where the diagnosis of the consumer's needs is...

This article establishes the relationship between the static axiomatic theory of bargaining and the sequential strategic approach to bargaining. We consider two strategic models of alternating offers. The models differ in the source of the incentive of the bargaining parties to reach agreement:...

We analyze a duopoly in which firms acquire inputs through bilateral monopoly relations with suppliers. We combine a bargaining model with a duopoly model to examine how input prices and profits are affected by the structures of the upstream and downstream industries, by the demand relations...

This paper explores how the requirement that the implementation of contracts be renegotiation-proof affects the set of contracts that can be implemented in a seller-buyer scenario in which the information regarding the agents' valuations is nonverifiable. This paper explicitly adds a time...

The main idea of this article is that geographical concentration of stores selling similar products can be explained by consumers' imperfect information and their resulting need to search the market. A cluster of stores sustained by these forces is not necessarily located at the point that...

The paper presents a simple pairwise meetings model of trade. The new feature is that agents have asymmetric information about the true state of the world. The focus is on the transmission of the information through the process of trade. The qualitative question is : to what extent is the...