We show that a unique active equilibrium exists in each linear bilateral oligopoly whenever it satisfies a certain …

Equilibrium models with heterogeneous agents and aggregate uncertainty are difficult to analyze since policy functions … part applies this equilibrium concept to models of firm dynamics with competitive or frictional input markets and to …

choose sequential contracts can be an equilibrium and that this outcome is favourable for the long-living, but is …

Riley (1979)'s reactive equilibrium concept addresses problems of equilibrium existence in competitive markets with … adverse selection. The game-theoretic interpretation of the reactive equilibrium concept in Engers and Fernandez (1987) yields … the Rothschild-Stiglitz (1976)/Riley (1979) allocation as an equilibrium allocation, however multiplicity of equilibrium …

favourable for the long-living individuals, represent an equilibrium. …

in the spirit of Wilson (1977)’s ‘anticipatory equilibrium’ by introducing an additional stage in which initial contracts … can be withdrawn after observation of competitors’ contract offers. We show that an equilibrium always exists where … as equilibrium contracts. However, the second-best efficient WMS allocation is the unique equilibrium allocation under …

symmetric equilibrium always exists. Exact conditions under which the equilibrium involves mixed strategies are provided. The … mixed equilibrium features (i) cross-subsidization across risk levels, (ii) dependence of offers on the risk distribution …

This paper builds on an analytical tool for studying entrepreneurship in a new classical general equilibrium framework …