Intro -- Contents -- I Introduction -- II Defining the multi-stage game with endogenous discounting -- III Equilibrium analysis -- IV Finite horizon and equilibrium selection -- V An illustrative example -- VI Discussion and concluding remarks -- Appendix -- References.

This paper derives an equilibrium for a competitive multi-stage game in which an agents' current action influences his probability of survival into the next round of play. This is directly relevant in banking, where a banks' current lending and pricing decisions determines its future probability...

Using a simple model of two-sided markets, we show that, in the social optimum, platform pricing leads to an inherent cost recovery problem. This result is driven by the positive externality of participation that users on either side of the market exert on the opposite side. The contribution of...