Showing 1 - 10 of 163
We analyze the effect of industrial espionage on entry deterrence. We consider a monopoly incumbent who may expand capacity to deter entry, and a potential entrant who owns an Intelligence System. The Intelligence System (IS) generates a noisy signal based on the incumbentʼs actions. The...
Persistent link: https://www.econbiz.de/10011049669
In this paper, we introduce a notion of epistemic equivalence between hierarchies of conditional beliefs and hierarchies of lexicographic beliefs, thus extending the standard equivalence results of Halpern (2010) and Brandenburger et al. (2007) to an interactive setting, and we show that there...
Persistent link: https://www.econbiz.de/10010785196
We consider the optimality of liquidated damages contracts in a setting of contractual ambiguity and potential for disputes. We show that when parties are ambiguity averse enough, they will optimally choose liquidated damages contracts and sacrifice risk sharing opportunities.
Persistent link: https://www.econbiz.de/10010906692
We analyze the problem of aggregating judgments over multiple issues from the perspective of whether aggregate judgments manage to efficiently use all voters' private information. While new in judgment aggregation theory, this perspective is familiar in a different body of literature about...
Persistent link: https://www.econbiz.de/10011049697
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for potential applications of asymmetric unawareness. Applying our unawareness belief structures, we show that the common prior assumption is too weak to rule out...
Persistent link: https://www.econbiz.de/10011049829
We define generalized extensive-form games which allow for asymmetric awareness of actions. We extend Pearceʼs (1984) notion of extensive-form (correlated) rationalizability to this setting, explore its properties, and prove existence.
Persistent link: https://www.econbiz.de/10011049860
We study type spaces where a player's type at a state is a conditional probability on the space. We axiomatize these spaces using conditional belief operators, examining three additional axioms of increasing strength. First, introspection, which requires the agent to be unconditionally certain...
Persistent link: https://www.econbiz.de/10010931186
We study how resale affects auctions with costly entry in a model where bidders possess two-dimensional private information signals: entry costs and valuations. We establish the existence of symmetric entry equilibrium and identify sufficient conditions under which the equilibrium is unique. Our...
Persistent link: https://www.econbiz.de/10010662458
We show that in multi-sender communication games where senders imperfectly observe the state, if the state space is large enough, then there can exist equilibria arbitrarily close to full revelation of the state as the noise in the senders' observations gets small. In the case of replacement...
Persistent link: https://www.econbiz.de/10011117135
In an individual experimentation problem a decision maker learns only from his own experience. It is well known that an optimal experimentation strategy for such problems sometimes results in the best alternative being dropped altogether, which is the so-called “Rothschild effect.” Many...
Persistent link: https://www.econbiz.de/10011049690