This paper develops a theoretical foundation for the undercut-proof equilibrium (see Shy, 1996, 2002; Morgan and Shy, 2013). In a general spatial setting, the set of undercut-proof prices is equivalent the core of a non-transferable utility coalitional-game, played on the set of outcomes that are...

This study identified five Australian housing markets that could be made more efficient using online technology to match highly specific ‘buyers' and ‘sellers'. The five markets considered are: swaps in public housing; disability accessible housing; low-cost private rental housing brokerage;...

Where a manager's actions are “costless” and influence firm risk, the manager's career concerns give rise to moral-hazard. The optimal contract cannot be found using the standard techniques as the Monotone Likelihood Ratio Condition does not hold. This difficulty is resolved if an additional...

We augment the multi-market collusion model of Bernheim and Whinston (1990) by allowing for firm entry into, and exit from, individual markets. We show that this gives rise to a new mechanism by which a cartel can sustain a collusive agreement: Collusion at the extensive margin whereby firms...