In this paper, the one-dimensional vertical differentiation model (Shaked and Sutton [Shaked, A., J. Sutton. 1982. Relaxing price competition through product differentiation. 3–13.], Moorthy [Moorthy, K. S. 1988. Product and price competition in a Duopoly. (Spring) 141–168.]) is extended to...

This paper examines two strategic pricing decisions within channels: using foresight (i.e., price leadership) and considering category implications (i.e., product line pricing). Are price leadership and product line pricing always the best pricing strategies for a channel member? If not, when...

The motion picture industry is characterized by a dynamic market environment, limited shelf space and product category management, and consequently, complex channel contracts specifying the split of box office revenue between distributors and exhibitors. Although such a contracting practice...

With the increase in new product introductions in consumer packaged goods categories, supermarkets are reluctant to accept new products. Therefore, it is very important for manufacturers to convince retailers of the high-demand potential of their products. We study how a high-demand manufacturer...

We consider a large population of agents choosing either to engage in a criminal activity or working. Individuals feel varying degrees of selfreproach if they commit criminal acts. In addition, they are concerned with their social status in society, based on others' perceptions of their values....

Hausken (2008a) formulates a contest-theoretic model of the attack and defense of a network of targets. This note identies a technical error that invalidates Hausken's characterization of Nash equilibrium for a substantial portion of the parameter space that he examines and provides necessary...

The idea of team-thinking or we-thinking is increasingly drawing the attention of economists. The main claim of scholars who analyze we-thinking is that it is a coherent mode of reasoning people may use when they face a decision problem. But, if there is a general agreement on the existence of...

This paper proposes a general incomplete information framework for studying behavior in strategic games with stepwise (viz. `level-k' or `cognitive hierarchy') thinking, which has been found to describe strategic behavior well in experiments involving players' initial responses to games. It is...

The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our analysis suggests that, given EMU’s present...

Bounded rational behaviour is commonly observed in experimental games and in real life situations. Neuroeconomics can help to understand the mental processing underlying bounded rationality and out-of-equilibrium behaviour. Here we report results from recent studies on the neural basis of...