We study a market model in which competing firms use costly marketing devices to influence the set of alternatives which consumers perceive as relevant. Consumers in our model are boundedly rational in the sense that they have an imperfect perception of what is relevant to their decision...

In standard contract-theoretic models, the underlying assumption is that agent types differ in their preference or cost parameters, and the principal's objective is to design contracts in order to screen this type. We study a contract-theoretic model in which the heterogeneity among agent types...

In this paper we investigate the implementation problem arising when some of the players are “faulty” in the sense that they fail to act optimally. The planner and the non-faulty players only know that there can be at most k faulty players in the population. However, they know neither the...

In this paper we investigate the implementation problem arising when some of the players are "faulty" in the sense that they fail to act optimally. The planner and the non-faulty players only know that there can be at most k faulty players in the population. However, they know neither the...

In standard contract-theoretic models, the underlying assumption is that agent types differ in their preference or cost parameters, and the principal's objective is to design contracts in order to screen this type. We study a contract-theoretic model in which the heterogeneity among agent types...

The authors study a multilateral bargaining procedure that extends A. Rubinstein's (1982) alternating offer game to the case of n players. The procedure captures the notion of consistency in the sense familiar in cooperative game theory and they use it to establish links to the axiomatic theory...

We analyse a market where (i) trade proceeds by random and anonymous pairwise meetings with bargaining; (ii) agents are asymmetrically informed about the value of the traded good; and (iii) no new entrants are allowed once the market is open. We show that information revelation and efficiency are...