This paper develops a theoretical model to analyze the firms' incentives to preannounce their new products. We consider a two-period model where a single firm controls the market with one product in the first period and a new and better product is introduced in the second period, either by the...

The paper studies Bayesian Games which are extended by adding pre-play communication. Let T be a Bayesian game with three or more players. The main result is that if players can send private messages to each other and make public announcements then every communication equilibrium outcome, q,...

The present paper proposes new concepts and a new scenario with which to analyze cooperative interim contracting and re-contracting in an organization.

This paper proposes an aspiration-based model of bounded rationality, which is applied to a large-population context where agents are re-matched every period to play a Prisoner's Dilemma.