This paper proposes a more general definition of loss avoidance, relates it to fairness and applies it to the labor market. By influencing judgments about what is a fair wage readjustment, it can lead to coordination failures, generating downward nominal wage rigidity (DNWR) and disinflation...

Products are priced in order to sell them and make a profit. Every firm, therefore, needs a pricingstrategy. Such a strategy should be simple. It should ensure simplicity in tactics and decisions andminimize complications.It is difficult to set a price with the help of only one pricing model....

This article represents the first of several editorials to appear in the Journal of Retailing designed to examine the nexus between retail practice and research, with the goal of stimulating further research. This essay on emerging trends in pricing discusses recent advances in retail pricing...

Knowledge of consumers’ willingness-to-pay (WTP) provides a company with invaluable data for both pricing decisions and product development. Without an understanding of consumers’ WTP for its products, a company may not pursue an optimal pricing strategy or achieve its pricing objectives....

I study how firms actually compete in nonlinear tariffs by analyzingwhether the incumbent and entrant's decisions to offer a given number oftariff options are interrelated. The goal is to shed some light on thosedynamic and strategic aspects of tariff menus that are currently ignoredby...

This paper provides an explanation for an important institutional feature of staggered time-dependent adjustment rules assumed in a number of macroeconomic models. It identifies strategic complementarity as the crucial factor leading to nonsynchronized decisions in a game-theoretic framework....

We present a model of neighborhood effects in wage payment delays. Positive feedback arises because each employer’s arrears affect the late payment costs faced by other firms in the same local labor market, resulting in a strategic complementarity in the practice. The model is estimated on...

The class of weakly acyclic games captures many practical application domains, and is particularly relevant for multi-agent distributed control problems. However, reliably checking weak acyclicity is extremely computationally intractable (PSPACE-complete) in the worst case. The present paper...

This paper begins with a survey of the literature on the political economy approaches to labor income taxation. We focus on recent progress made by examining in detail the specific properties of non-linear taxes derived in the context of voting. Next, we present new results on the existence of...

This paper develops a theoretical model of cyberwarfare between nations, focusing on the factors that determine the severity and outcomes of cyber conflicts. We introduce a two-country model where nations invest in offensive or defensive cyber capabilities across networked systems. We show that...