This article makes a start in characterizing the second-best solution to a smooth, symmetric partnership problem. It derives a more tractable formulation of the problem using a modified version of the condition in Legros and Matthews (1993). Then it uses this formulation to show that the...

We study the relationship between ambiguity (which comes into the picture since contracts have to be written in natural language), and contractual incompleteness. The contracting process is modelled as a signalling game between the parties and the judge, with the contract as the signal. The...

This paper looks at the time-path of prices in a two-period modified version of the reputation model of Milgrom and Roberts(10) in which a non-standard price signalling stage game is substituted for the entry-deterrence game those authors work with. It shows that prices may rise or fall from one...

In this paper we modify the `cheap-talk' model of Crawford and Sobel 1982 by taking the state space to correspond to a circle (instead of a line). It is shown that in such a setup the relationship between the `bias' (i.e., the parameter capturing the divergence of interests between sender and...

This paper presents a simple model illustrating an alternative approach to modelling employment in which instead of distinguishing between households and firms as is conventional, I work with market-oriented household-producers (in contrast to the subsistence-oriented entities in the...