We propose a method, alternative to that of Estrella (2003, <italic>Econometric Theory</italic> 19, 1128–1143), of obtaining exact asymptotic <italic>p</italic>-values and critical values for the popular Andrews (1993, <italic>Econometrica</italic> 61, 821–856) test for structural stability. The method is based on inverting an integral...

In this paper, we investigate interaction between two firms, which are engaged in a repeated procurement relationship modelled as a multiple criteria auction, and an auctioneer (a government employee) who has discretion in devising the selection criteria. A first result is that, in a one-shot...

We investigate the issue of implementation via individually rational ex-post budget-balanced Bayesian mechanisms. We demonstrate that all social choice rules that generate a nonnegative ex-ante surplus, including ex-post efficient ones, can generically be implemented via such mechanisms for any...

The quantal response equilibrium (QRE) notion of McKelvey and Palfrey (1995) has recently attracted considerable attention, due largely to its widely documented ability to rationalize observed behavior in games played by experimental subjects. We show that this ability to fit the data, as...