We survey the main results on strategic information transmission, which is often referred to as ``persuasion" when types are verifiable and as ``cheap talk" when they are not. In the simplest ``cheap talk'' model, an informed player sends a single message to a receiver who makes a decision. The...

This paper examines finite parimutuel betting games with asymmetric information, with particular attention to differences between sequential and simultaneous settings, and betweenfully rational and myopic ("price taking") behavior. In the simultaneous parimutuel market,all (symmetric and...

This paper examines ¯nite parimutuel betting games with asymmetric information, with par-ticular attention to di®erences between sequential and simultaneous settings, and betweenfully rational and myopic (\price taking") behavior. In the simultaneous parimutuel market,all (symmetric and...

This paper surveys the notion of common knowledge taken from game theory and computer science. It studies and illustrates more generally the effects of interactive knowledge in economic and social problems. First of all, common knowledge is shown to be a central concept and often a necessary...

We study sequential parimutuel betting markets with asymmetrically informed bettors, using an experimental approach. In one treatment, groups of eight participants play twenty repetitions of a sequential betting game. The second treatment is identical, except that bettors are observed by other...

Parikh and Krasucki (1990, JET 52) have suggested in an informal manner that a consensus does not require common knowledge. Weyers (1992, CORE DP 9228) has proved that their model does not permit such a conclusion, and that a more general one has to be constructed. Heifetz (1996, JET 70) has...

How should a seller optimally sell his good to a buyer whose willingness to pay depends on his privately-known taste and on product characteristics privately known by the seller? The optimum is characterized by a mediated selling protocol and is sometimes implementable by bilateral face-to-face...

This paper shows consistency of a two step estimator of the parameters of a dynamic approximate factor model when the panel of time series is large (n large). In the first step, the parameters are first estimated from an OLS on principal components. In the second step, the factors are estimated...

Discrete choice models are based on the idea that each user can choose both freely and independently from other users in a given set of alternatives. But this is not the case in several situations. In particular, limitations and interactions can occur when the number of available products of one...

Using data from financial reorganization plans filed by insolvent Canadian firms, we estimate the discount rate implicit in the unsecured creditors' reorganization decision. Using (HARA) utility functions, we find the implicit monthly discount rate of creditors to be 4.9%, which corresponds to...