The 2×2 game is the simplest non-trivial model of strategic interaction: there are two players, each has two strategies, and each has a strict preference ranking over the four possible outcomes. For models of play that depend only on the ranking of the outcomes, the catalog of 2×2 games...

We study a generalization of the static model of Kyle with two risk neutral insiders to the case where each insider is partially informed about the value of the stock. First, we provide a necessary and sufficient condition for the uniqueness of the linear Bayesian equilibrium. Specifically, we...

The mathematical analogies between economics and classical mechanics can be extended from constrained optimization to constrained dynamics by formalizing economic (constraint) forces and economic power in analogy to physical (constraint) forces in Lagrangian mechanics. In a...