We study the relationship between rationality and economic survival in a simple dynamic model, where agents from different populations interact repeatedly through random matching. An explicit criterion ("bankruptcy") determines whether agents survive each interaction; all agents are presumed to...

Profit centers in a firm in multidivisional form agree in the ex ante stage upon a plan about their joint production and profit imputation. The plan is executed in the subsequent two periods of the interim stage: the setup period and the manufacturing period. In the setup period, each center has...