We study an infinitely repeated game where two players with equal discount factors play a simultaneous-move stage game. Player one monitors the stage- game actions of player two imperfectly, while player two monitors the pure stage- game actions of player one perfectly. Player one’s type is...

We study price formation in a large, common-value auction where buyers choose, based on their private information, between bidding in the auction and an outside option. The distribution of bidders participating in the auction is determined endogenously in equilib- rium. We first focus on an...

We introduce a class of two-player dynamic games to study the effectiveness of screening in a principal-agent problem. In every period, the principal chooses either to irreversibly stop the game or to continue, and the agent chooses an action if the principal chooses to continue. The agent’s...