We model the impact of the transfer price rule (a constraint that re- quires the downstream division of a vertically-integrated ?rm to earn at least a normal rate of return on investment in the counterfactual case that it pays the same price as a nonintegrated ?rm for the essential input), re-...

Evidence shows that real-effort investments can affect bilateral bargaining outcomes. This paper investigates whether similar investments can inhibit equilibrium convergence of experimental markets. In one treatment, sellers’ relative effort affects the allocation of production costs, but a...

Theoretical models of information asymmetry have identied a tradeoff between the desire to learn and the desire to prevent an opponent from learning private information. This paper reports a laboratory experiment that investigates if actual bidders account for this tradeoff, using a sequential...

Resource constraints are commonly found in classification tasks. For example, there could be a budget limit on implementation and a deadline for finishing the classification task. Applying the top-down approach for tree induction in this situation may have significant drawbacks. In particular,...

In many classification tasks, managing costs and completion times are the main concerns. In this paper, we assume that the completion time for classifying an instance is determined by its class label, and that a late penalty cost is incurred if the deadline is not met. This time requirement...

In the Colonel Blotto game, each of two players simultaneously allocates his fixed budget of a resource across a finite number n of battleelds. Within each battlefield, the player that allocates the higher level of the resource wins the battlefield. Each player's payoff is equal to the sum of...

Material-Adverse-Change clauses (MACs) are present in over 90% of acquisition agreements. These clauses are the outcome of extensive negotiation and exhibit substantial cross-sectional variation in the number and types of events that are excluded from being ‘material adverse events’ (MAEs)....

As part of a broad competitive intelligence strategy, firms expect to acquire information about their rivals’ customers and production processes. In this study, we examine the firms’ incentives to disclose this information. We find that firms adopt a policy of disclosing their information...

This paper examines a game-theoretic model of attack and defense of multiple networks of targets in which there exist intra-network strategic complementarities among targets. The defender’s objective is to successfully defend all of the networks and the attacker’s objective is to...

The Colonel Blotto game is a two-player constant-sum game in which each player simultaneously distributes his fixed level of resources across a set of contests. In the traditional formulation of the Colonel Blotto game, the players’ resources are “use it or lose it” in the sense that any...