This paper studies whether a monopolist with private marginal cost information has incentives to make cost-reducing innovations through research and development (R&D) when its output and price are regulated according to the incentive-compatible mechanism of Baron and Myerson (1982). Under...

This paper introduces a class of endogenously proportional bargaining solutions. These solutions are independent of the class of Directional solutions, which Chun and Thomson (1990a) proposed to generalize (exogenously) proportional solutions of Kalai (1977). Endogenously proportional solutions...

In this paper, we study whether simple heuristics can arise as equilibrium strategies in mutual sequential mate search. To this aim, we extend the mate search model of Todd and Miller (1999), involving an adolescence (learning) phase followed by an actual mating phase, to a strategic game where...

Human mate choice is a boundedly rational process where individuals search for their mates without appealing to optimization techniques due to informational, computational and time constraints. A seminal work by Todd and Miller (1999) models this search process using simple heuristics, i.e....

Recent experimental studies find excessive truth-telling in sender–receiver games. We show that this phenomenon is robust to the random intervention of a truthful regulator. In addition, intervention significantly increases the excessive trust of receivers while the overall percentage of...

In this paper, we show that the one-to-one matching model of Mumcu and Saglam (2008) studying stability under interdependent preferences is refutable. We also give a sufficient characterization of the set of matchings that are rationalizable inside the core.