This paper studies how the persistence of past choices can be used to create incentives in a continuous time stochastic game. A large player, such as a firm, interacts with a sequence of small players, such as customers. The large player faces moral hazard and her actions are imperfectly...

This paper explores how the persistence of past choices creates incentives in a continuous time stochastic game involving a large player (e.g., a firm) and a sequence of small players (e.g., customers). The large player faces moral hazard and her actions are distorted by a Brownian motion....

We investigate the nature of continuous-time strategic interactions in public-goodsgames. In one set of treatments, four subjects make contribution decisions in continuous timewhile in another they make them only at discrete points of time. The effect of continuous timeis muted in public-goods...