We study incomplete information games with ambiguity averse players. Our focus is on equilibrium concepts satisfying sequential optimality each player's strategy is optimal at each information set given opponents' strategies. We show sequential optimality, which does not make any explicit...

We argue that when externalities such as pollution are nonexcludable, agents must be compelled to participate in a “mechanism” to ensure a Pareto-efficient outcome. We survey some of the main findings of the mechanism-design (implementation-theory) literature – such as the Nash...

In the standard principal-supervisor-agent model with collusion, Tirole (1986) shows that employing a supervisor is profitable for the principal if the supervisor's signal of the agent's cost of production is 'hard' (i.e., verifiable but hideable). Anecdotal evidence suggests that information is...