Potential customers of network commodities face coordination problems due to adoption externalities that give rise to multiple, Pareto-ranked equilibria. We investigate the extent to which the coordination problem can be resolved by inducement schemes when agents’ preferences are private...

The glass ceiling is one of the most controversial and emotive aspects of employment in organisations. This paper provides a model of the glass ceiling that exhibits the following features that are frequently thought to characterise the problem: (i) there is a lower number of female employees in...

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 (e.g, auto mechanics, physicians). Specifically, the sustainable honesty level is characterized in...

This paper studies the information transmission aspect of influence activities within an organization where privately informed division managers strategically communicate divisional information to headquarters to influence its capital allocation decisions. Although costly, influence activities...

We estimate the effect of corporate diversification on firm value using a sample of 766 segment-year observations during 2004 – 2008 for firms listed on the Australian Stock Exchange as of August 2009. In addition to conventionally used measures of diversification, we develop five new measures...

When an agent decides whether to join a coalition or not, she must consider both i) the expected strength of the coalition and ii) her position in the vertical structure within the coalition. We establish that there exists a positive relationship between the degree of inequality in remuneration...

This paper establishes the generic finiteness of equilibrium outcome distributions for Sender-Receiver cheap-talk games. An equilibrium in a Sender-Receiver cheap-talk game is said to be in reduced form if every message is used by at least one type and no two messages provoke the same response....

An intuitively natural consistency condition for contingent plans is necessary and sufficient for a contingent plan to be rationalized by maximization of conditional expected utility. One alternative theory of choice under uncertainty, the weighted-utility theory developed by Chew Soo Hong...

We show that sellers may earn reputation for their \ability" to deliver high quality goods on average by honestly announcing the realised quality of items for sale every period. As the expected revenue stream from continuing with honest communication increases with their ability, high ability...