The paper proposes a formalization of rational agents as first-order consistent formal systems. On this basis we build a notion of common knowledge and common rationality, among agents who are globally inconsistent with each other. An existence theorem for a formal system of common rationality...

We enquiry about the effects of first and second order stochastic dominance shifts of the distribution of the consumers’ willingness to pay, within the standard model of a market with network externalities and hump-shaped demand curve. This issue is analyzed in the polar cases of perfect...

Karl Popper is one of the most important philosophers on contemporary science. His works related with both natural and social sciences are well known. This paper fries to provide some elements to answer the following question: is it sensible to apply Popper's methodology to economics? The topics...

We study the optimal manipulation rules of a public firm’s objective function in a mixed duopoly with imperfect product substitutability. We compare the solutions under quantity and price competition, and the way in which they are affected by the degree of product substitutability. This...