This paper studies reputational constraint in a monetary policy game. The paper extends the standard Barro-Gordon model by considering a continuum of types of policy maker and exogenous disturbances and/or control errors in money supply. A sequential Nash equilibrium of this game shows that it...

To account for the possibility that firms are unsure about the ease of innovation, we formulate a differential game of R&D competition with an unknown hazard rate. We show, as time passes with success, firms become more pessimistic about eventual innovation, reducing their R&D investment and...