There are many economic environments in which an object is offered sequentially to prospective buyers. It is often observed that once the object for sale is turned down by one or more agents, those that follow do the same. One explanation that has been proposed for this phenomenon, which goes...

In goods markets an equilibrium price balances demand and supply; in a financial market an equilibrium price also aggregates people's information. And while the underlying efficient market hypothesis is one of the centerpieces of capital market theory, students often have difficulties grasping...