This paper examines the effectiveness of cheap talk advice in recurrent relationships between a customer, and multiple experts who provide professional services with differentiated specialties. Specifically, the sustainable honesty level is characterized in relation to the degree of rivalry...

This paper provides a model of planned obsolescence in a competitive market. A feature of the model is that there are configurations where a firm cannot survive in the competitive market unless its product exhibits planned and known obsolescence. This form of obsolescence is complementary to...

I analyze and compare the effects of sequential and simultaneous cheap-talk communication (e.g., preannouncement of entry) among privately informed potential entrants who then play a normal-form entry game. The first main result is that cheap-talk communication is powerful enough to enable the...

We show that information exchange via disclosure is possible in equilibrium even when it is certain that whenever one party learns the truth, the other loses. The incentive to disclose results either from an expectation of disclosure being reciprocated - the quid pro quo motive - or from the...

We analyze an entry game with multiple periods. In each period privately informed agents who have not yet joined decide whether to subscribe to a network. Subscribers derive benefits in future periods depending on the network size. We study the case where agents are sufficiently patient and show...

Extending Milgrom and Roberts (1982) we present an infinite horizon entry model, where the incumbent(s) may use the current price to signal its strength to deter entry. We show that, due to the importance of entrants' types on the post-entry duopoly/oligopoly profits, the incumbent(s) may want...

We develop a stylized college admission model to analyze the effects of need-blind admission policy which requires admission decisions to be independent of applicants’ financial needs. We show that the need-blind admission policy enhances needy students’ enrollment if financial aid offers...