This paper studies the English (progressive) auction for an exchange economy with multiple objects. The English auction is a tatonnement process and lasts multiple rounds. It is modeled as a sequence of round games. Each round game is a normal form game in which an agent's strategies are his...

We report results of experiments designed to test the predictions of the best reply process. In a Cournot oligopoly with four firms, the best reply process should theoretically explode if demand and cost functions are linear. We find, however, no experimental evidence of such instability....

This paper studies the welfare consequences of a vertical merger that raises rivals costs when downstream competition is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can nevertheless improve welfare if it involves a...