This article introduces a model of decentralized markets with frictions. In our framework, utility is imperfectly transferable between agents that can only trade through bipartite contracting. Economic outcomes are defined as pairs of a flow vector and a price vector.We prove the existence of a...

The paper introduces the concepts of incentive relation and implementation relation, discussing them in the context of agent-principal relationships. The incentives literature relevant to implementation is reviewed, as well as relevant literature on individual behavior in organizations and on...

Based on the simple model of the deposit the methodology of finding the optimal solution for bilateral monopoly (BM) of lignite mine and power plant is shown taking into account pit optimisation. It is proposed to treat lignite price negotiation as a kind of game. In the first stage...

Different structures of lignite mines and power stations, which have appeared on the Polish market as a result of its transformation and the privatisation, were discussed. The attention is focused on the fact that the practice is overtaking the theory because there is lack of models of...

For methods of the profit division in the bilateral monopoly of the mine and the power station sug-gested in the first part of this paper the formulae for lignite price and shares in the joint profit of the mine and the power station are calculated. The proposed profit division contain: the...

The newest outcome of bilateral monopoly (BM) of lignite opencast mine & power plant analysis have been discussed. The determinism of optimal solution maximising joint profits not only in quantity of lignite - the size and shape of the ultimate pit (characteristic to classical solution) but also...

Lignite mine and power plant can operate as two separate entities, two entities in one holding or joint venture and as the one vertically integrated energy producer. Each of these solutions has the influence on operation of this tandem including realization of its individual and joint...

The newest findings in analysis of bilateral monopoly (BM) of lignite opencast mine & power plant have been discussed. The determinism of optimal solution not only in quantity of lignite (the size and shape of the ultimate pit) but also in its price has been depicted. It has been proposed to...

The application of Nash bargaining solution to profit division in negotiation between opencast lignite mine and power plant has been discussed. Different proposals of status quo point usage and ways of its determination for profit sharing both in strategic and tactical/operational negotiation...

We reconsider the property rights approach to the theory of the firm based on incomplete contracts. We explore the implications of different degrees of relationship-specificity when there are two parties, A and B, who can make investments in physical capital (instead of human capital). If...