This paper studies the optimal design of a liability-sharing arrangement as an infinitely repeated game. We construct a noncooperative model with two agents: one active and one passive. The active agent can take a costly and unobservable action to reduce the incidence of crisis, but a crisis is...

Holders of standard-essential patents must provide access to potential licensees on fair, reasonable, and non-discriminatory terms (FRAND). In the context of industrial economics, standardization shifts the demand curve outward. On one hand, profits from standardization can flow to the owners of...

We propose a functional formulation of Nash equilibrium based on the optimization approach: the set of Nash equilibria, if it is nonempty, is identical to the set of optimizers of a real-valued function. Combining this characterization with lattice theory, we revisit the interchangeability and...

Most literature in strategic network formation shows that there is a substantial tension between stability and efficiency. In this note, I show that such is not the case in the two-way flow model with small decay studied by Bala and Goyal (2000a) and De Jaegher and Kamphorst (2015)....

Bioethanol is an essential energy source and is produced from agricultural feedstocks. However, raw bioethanol contains much water and methanol, and the traditional distillation approach has hardly removed it. Adsorptive separation of ethanol from water and methanol by adsorbents is an...

Whether or not to vaccinate one’s child is a decision that a parent may approach in several ways. The vaccination game, in which parents must choose whether to vaccinate a child against a disease, is one with positive externalities (herd immunity). In some societies, not vaccinating is an...

Yellow fever is a vector-borne acute viral hemorrhagic disease. It is endemic in tropical areas of Africa and Latin America but demonstrated the potential for international spread during the 2016 outbreak in Luanda, Angola. Yellow fever can be prevented by vaccination, vector control, and...