The strategic importance of commitment in bargaining is widely acknowledged. Yet disentangling its role from key features of canonical models, such as proposal power and reputational concerns, is difficult . This paper introduces a model of bargaining with strategic commitment at its core....

We conducted the trust game experiments with Japanese university students and international students. In the beginning of the trust game, the general attributes of subjects such as gender, school year, faculty and birthplace are mutually informed. All the international students are assigned as...

This study examines theoretically and empirically how different contest structures, particularly, simultaneous or sequential decision of contestants, impact competition intensity when contestants are heterogenous. The main goal of this paper is to provide the first empirical comparison of...

We develop a two-period model of redistributive politics in which two politicians compete in an election in each period. In the first period, the politicians propose both whether to experiment with an efficient reform with uncertain benefits and choose the amount of public debt. Politicians also...

“Bottom-up” visual perception is fast, universal, and does not depend on personal goals or experience. Where exactly bottom-up attention is directed in a visual image-- usually based on contrast, color, feature orientation, and centrality-- can be accurately predicted by machine-learned...

We identify a new mechanism through which cultural diversity affects economic outcomes, based on a model of culture as shared cognition. Under this view, cultural diversity matters because it increases strategic uncertainty. The model can help better understand a variety of disparate evidence,...

Standard economic models cannot capture the fact that information is often ambiguous, and is interpreted in multiple ways. Using a framework that distinguishes between the language in which statements are made and the interpretation of statements, we demonstrate that, unlike in the case where...

The retail e-commerce yields lucrative revenue in many industries. In this work, we provide a strategic perspective by investigating how consumer valuation, product quality, and manufacturers’ competition influence the choice of selling agreement using stylized models. The utility and...

We explore the welfare implications of data tracking technologies that enable firms to collect consumer data and potentially use it for price discrimination. The model we develop centers around two features: first, competition between firms and, second, consumers' level of sophistication. Our...

This article presents a model of oligopsony. It considers different conjectural variations that cover the whole range between the extreme cases of monopsony and perfect competition, such as Collusion, Threat, Cournot, Stackelberg, and Bertrand, and compares them in terms of prices, quantities,...