This paper questions whether competition can replace sector-specific regulation of mobile telecommunications. We show that the monopolistic outcome may prevail independently of market concentration when access prices are determined in bilateral negotiations. A lighthanded regulatory policy can...

I study the evolution of rationality, using an indirect evolutionary approach, in which nature selects a decision-making procedure, and the procedure chooses actions in matching-games. The main result is that in order for (knowledge of) rationality to survive, it is necessary and sufficient that...