This paper studies efficient partnership dissolution with ex post participation constraints in a setting with interdependent valuations. We derive a sufficient condition that ensures the existence of an efficient dissolution mechanism that satisfies Bayesian incentive compatibility, ex post...

This paper considers the robustness of equilibria to a small amount of incomplete information,where players are allowed to have heterogenous priors. An equilibrium of a complete information game is robust to incomplete information under non-common priors if for every incomplete information game...

This paper studies the impact of a small probability event on strategic behavior in incomplete information games with non-common priors. It is shown that the global impact of a small probability event (i.e., its propensity to affect strategic behavior at all states in the state space) has an...

We present examples of a parameterized optimization problem, with a continuous objective function differentiable with respect to the parameter, that admits a unique optimal solution, but whose optimal value function is not differentiable. We also show independence of Danskin's and Milgrom and...

This paper studies global stability of spatial configurations in a dynamic two-region model with quadratic adjustment costs where rational migrants make migration decisions so as to maximize their discounted future utilities. A global analysis is conducted to show that, except for knife-edge...

This paper considers a class of migration dynamics with forward-looking agents in a multi-country solvable variant of the core-periphery model of Krugman (Journal of Political Economy 99 (1991)). We find that, under a symmetric externality assumption, our static model admits a potential...

This note demonstrates that symmetric 3x3 supermodular games may fail to have any equilibrium robust to incomplete information. Since the global game solution in these games is known to be independent of the noise structure, our result implies that a noise-independent selection in global games...

For any given set-valued solution concept, it is possible to consider iterative elimination of actions outside the solution set. This paper applies it to define the concept of iterated monotone potential maximizer (iterated MP-maximizer). It is shown that under some monotonicity conditions, an...

This paper investigates the impacts of progressive trade openness, technological externalities,and heterogeneity of individuals on the formation of entrepreneurship in a two-countryoccupation choice model. We show that trade opening gives rise to a non-monotonic processof international...

This paper considers the robustness of equilibria to a small amount of incomplete information, where players are allowed to have heterogenous priors. An equilibrium of a complete information game is robust to incomplete information under non-common priors if for every incomplete information game...