The general aim of this paper is to contribute to the study of factors that decrease corruption in the public sector and especially in tax administration. A matter of particular interest will be the effects of raising civil servants’ wages and penalties on the behavior of agents in case of tax...

We extend the theoretical model of external corporate financing to the case when the buyers of the borrowing firm may default during the financing period. In our setup there is an asymmetric information and hence moral hazard between the lender and the borrower concerning the effrts of the...

This paper develops a Stackelberg game model of a one-supplier and one-retailer supply chain with deteriorating product to investigate how to coordinate the price and service level decisions under vendor-managed inventory (VMI) and examine system efficiency. We study the equilibrium price and...

This paper uses dynamic games with complete and perfect information in solution of water conflict in Central Asia. The benefits and costs of the countries for their actions are modelled as payoffs for decision-makers within the frame of game theory concept. The equilibrium increasing the...

This paper analyzes the competitive role of retail shopping experience in markets with consumer search costs. We examine how a retailer's advantage in providing consumer shopping experience affects its equilibrium pricing and price advertising strategies. We find that if the consumer valuation...

The question as to the optimality of advertising pulsing has attracted many researchers over the last half-century. In this paper we specify a market share model in which there are two advertising-setting firms as well as a no-purchase option. The framework is that of a first-order Markov...

Consumers are often unable to resist the temptation of overconsuming certain products such as cookies, crackers, soft drinks, alcohol, etc. To control their consumption, some consumers buy small packages or abstain from purchasing the product altogether. Other consumers, however, still purchase...

This paper asks whether brand extension can serve as a signal of product quality given that it costs less than a new brand. (Existing literature has assumed either that brand extension is cost-neutral or that it costs more.) I show that it can as a perfect Bayesian equilibrium, but the argument...

This paper analyses firms' decisions to provide connectivity to their customers. We distinguish between intraconnectivity--the ability of one firm's customers to connect to each other--and interconnectivity--the ability of one firm's customers to connect with another firm's customers. The...

There exists a dichotomy in the communication strategies of fashion firms--some firms purposefully cloak information on the tastefulness of their products, whereas others openly flaunt their tasteful or "it" products. This divide in communication strategies cannot be explained by existing wealth...