A buyer seeking to outsource production may be able to find ways to reduce a potential supplier's cost, e.g., by suggesting improvements to the supplier's proposed production methods. We study how a buyer could use such "cost reduction investigations" by proposing a three-step supplier selection...

Building upon the static model of Athey and Ellison (2008), we demonstrate the efficient convergence of dynamic position auctions in the presence of consumer search. The entry of low-quality advertisers does not slow this convergence. Our methods are extensions of those introduced by Cary et al....

We model new experience goods in the context of dynamic mechanism design. These are goods for which an agent is unsure of her valuation but can learn it through consumption experience. We consider a dynamic environment with a single buyer and seller in which contracting occurs over T periods,...

When procurement contracts are awarded through competitive tendering participating firms commit ex ante to fulfil a set of contractual duties. However, selected contractors may find profitable to renege ex post on their promises by opportunistically delivering lower quality standards. In order...

We investigate the incentives for capacity investments in a simple strategic dynamic model with random demand growth. We construct non-collusive Markovian equilibria where the firms' decisions depend on the current capacity stock only. The firms maintain small reserve margins and high market...

In a k-double auction, a buyer and a seller must simultaneously announce a bid and an ask price respectively. Exchange of the indivisible good takes place if and only if the bid is at least as high as the ask, the trading price being the bid price with probability k and the ask price with...

Many online platforms act as intermediaries between a seller and a set of buyers. Examples of such settings include online retailers (such as Ebay) selling items on behalf of sellers to buyers, or advertising exchanges (such as AdX) selling pageviews on behalf of publishers to advertisers. In...

We study the design of information disclosure in a dynamic multi-agent research contest, where each agent privately searches for innovations and submits his best to compete for a winner-takes-all prize. We find that although submission is a onetime event for each agent, different disclosure...

Peters and Severinov (2006) (PS henceforth) characterize a perfect Bayesian equilibrium (PBE) in a competing auctions environment, where all buyers are linked to all the sellers. PS characterize a PBE using a simple bidding rule, whereby buyers select in which auction to bid. In this note we...

This paper studies sequential auctions in the presence of Knightian uncertainty about the distribution of values. We propose equilibrium notions based on the multiple selves approach to deal with the possible time inconsistency that arises with dynamic bidding for max-min bidders. We...