In an infinitely repeated game, sellers employ a trigger strategy of mutual forbearance from invasion of each other's markets, stabilized against invasion by the threat of Bertrand pricing. Contrary to conventional static models, this article shows stability for a wide range of transportation...

The author develops a method of hypothesis testing for revealed preference tests. This method is particularly well suited to tests of commonality of tastes or tests of preference stability. He devises a metric based on an estimate of the fraction of expenditure wasted in maximizing utility if...