We consider a problem at the interface of auctions and bundling. Our revenue-maximizing seller seeking to auction one unit each of two complements or substitutes in the best-of-three formats: the auction of the bundle, separate auctions of the individual items, and a combinatorial auction. We...

Online retailing boasts two major advantages: convenience of home shopping and easy access to information. In this paper, I argue that these two features have important implications for retailers' channel and advertising decisions. Two major questions are addressed: When should a conventional...

This paper shows that the analysis of Liu et al. (2004) contains a substantive error—the asserted pure-strategy Nash equilibrium leading to their Theorems 1 and 2 is really not an equilibrium. We show that in their model, either pure-strategy Nash equilibria do not exist or, unlike their...

In a model of vertical differentiation, the principal concern of this paper is to identify sufficient conditions for producing a higher- or lower-quality good to be more profitable (in terms of profits and profit margin). Our basic model considers a scenario where the firms' quality levels are...

In this paper we examine the issue of balancing media advertising (pull strategy) and trade promotions (push strategy) for manufacturers of consumer packaged goods utilizing a three-stage game theoretic analysis and test model's implications with scanner panel data. We develop a model of two...

Purpose – The purpose of this paper is to analyze a market for microfinance in a region of a developing nation in which all projects are either of high or low quality. There is adverse selection because only borrowers know whether their project is of high or low quality but the microfinance...

The Greek bail-out was highly controversial. An oft-heard assessment is that i) the bail-out was a mistake, ii) the political haggling over it was irrational and iii) the bail-out will create a moral hazard problem. Contrary to this view, our analysis suggests that, given EMU’s present...

Bounded rational behaviour is commonly observed in experimental games and in real life situations. Neuroeconomics can help to understand the mental processing underlying bounded rationality and out-of-equilibrium behaviour. Here we report results from recent studies on the neural basis of...

It has often been noted that most of the major world religions espouse a version of the "golden rule." In this paper we consider the cultural evolution of such a doctrine, where the responsibility to act altruistically towards others applies universally, not just to other members of the same...