We present an economic example of an affine-quadratic differential game where in Markov-perfect Nash equilibrium, the value function of a player is discontinuous in the model's parameters, implying that the strategy of that player is also discontinuous, even though the data of the game (state...

This paper introduces recursive Fama and MacBeth tests to assess the intertemporal significance and pervasiveness of macroeconomic factors and firm-specific characteristics in explaining the cross-section variation of expected returns in a dynamically changing stok market such as the Athens...

The successive enlargement processes of the European Union have implied reforms in Regional Policy. Since the Single European Act (1987), Europe has got a structural policy mainly focused on regions whose development is lagging behind. The accession of CEECs will mean an extraordinary increase...

Conventional wisdom has it that outside sources of information enhance the capability of political institutions to separate selfish from benevolent incumbents. This paper investigates, in the presence of innovative public policies whose outcomes are uncertain, the role of outside information and...

In this work the determinants of retailers' price-cost margings are investigated using a theoretical model of bilateral bargaining. We use bimonthly data on 36 grocery productes in Italy over the period 1989-1992 to test the theoretical predictions on the effect of vertical relationships on the...

The purpose of this paper is to summarise the data from recent surveys of artists of various kinds in the UK - performing and creative artists and craftspeople - and to analyse the way that artists' labour markets work. Topics covered include a discussion of the problems of defining artists, the...

The standard property rights theory of the firm assumes asset ownership is decided by negotiation between managers prior to their choice of unverifiable investment. This paper endogenises the event sequence in a matching model of market equilibrium. Equilibria in which agents invest (in human...

We built a simple alternating offers bargaining model in which one of the players can commit to damage the "pie" they are bargaining over. The unique equilibrium partition his share does not vary monotonically with the discount factor.

We introduce time-dependent rewards into a general framework for analyzing innovative activity among firms with sunk costs of R&D. When firms are identical, innovation is delayed by an increase in the number of firms or a decrease in the size of the reward. When one firm has higher profit...

In the last decade or so, disciples of Piero Sraffa have propagated a particular interpretation of classical economics, according to which the classical economists focussed on the 'core' of their analysis on the determination of relative prices in long-run equilibrium, taking as given the volume...