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...

One of the proudest achievements of classical and neoclassical economics is the derivation of the superiority of free trade. This result is obtained by assuming constant returns to scale, perfect competition and absence of externalities. The recent realization that the incomplete appropriability...