This paper focuses on implementation issues in environments where it may be costly for the players to send certain messages. We develop an approach allowing to characterize the set of implementable outcomes in such environments, and then apply it to derive optimal mechanisms. The key elements of...

This paper generalizes the Theorem of the Maximum (Berge, 1963) to allow for discontinuous changes in the domain and the objective function. It also provides a geometrical version of the (generalized) theorem.

A central question in economics is understanding the difficulties that parties have in reaching mutually beneficial agreements. Informational differences provide an appealing explanation for bargaining inefficiencies. This chapter provides an overview of the theoretical and empirical literature...