Brandenburger and Stuart (1996) identified coalitional games as a means of providing precise notions of value to evaluate strategic opportunities. In this paper, we show how coalitional game theory can be utilized to operationalize these approaches. In particular, we demonstrate the importance...

We study a competitive model in which firm managers differ in terms of ability, and the managers' actions are private information. Each firm chooses how able a manager to hire, and optimizes the manager's incentive pay as well as the level of cooperating resources available to the manager. Thus,...

Evolution of technology causes human capital to become obsolete. We study this phenomenon in an overlapping generations setting, assuming it is hard to predict how technology will evolve, and that older workers find updating uneconomic. Among our results is the proposition that (under certain...

This paper presents a model in which agents are distinguished by their characteristics, communication between firms and their customers plays an important role, and agents with similar characteristics communicate more effectively. The model is applied to annual data on the distribution of men...