Previous bargaining theories confirm that all efforts to stabilize the unstable Pareto optimal solution of cooperation are self-defeating. Instead of issuing threat, this paper shows the carrots. We do not give the players carrots, but we just show them that if they cooperate they can make the...

This paper proves that the classical monopoly model contains many errors. It mistakes the competitive supply curve as a marginal cost curve. It fuses two mutually exclusive market structures into one picture. It takes the supply curve of one competitive firm for the industry total. Its...

Arrow (1950) initiates an economic model for democratic game, but ends up with a dictatorship conclusion. This paper combines the behaviors of politicians and voters to solve the democratic problem. It shows that democracy is costly. The cost and utility considerations give rise to winner or...

Martin Feldstein distinguishes between nominal and real interest rate, and wants to compensate those hurt by inflation, unfortunately he does not have that money. Karl Marx uses profit rate to search for interest rate, but his resulted profit is always zero. To support Marx's Kapital, John...