Using a simple two-period model, this paper attempts to explain certain interesting intertemporal properties of product warranties. Specifically, why does coverage generally fall over time and why is the typical warranty's life so much shorter than the expected life of the product it covers? We...

This paper provides experimental evidence on forward induction as a refinement criterion. In the basic extensive form, one of the two players chooses to play a battle-of-the-sexes game or to receive a certain payoff. According to forward induction, choosing to play the game is a signal about...

We report experimental results on the role of preplay communication in a one-shot, symmetric battle of the sexes game. We conducted games in which there was no communication, and we studied the effects of three different communication structures: one-way communication with one round of messages...

This paper attempts to revive in the sales maximization hypothesis by providing that there are conditions under which such an objective can be profitable. Competition is modelled as a two-stage game. In the first stage owners write contracts with managers instructing them on whether to maximize...