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is significant. Even with this risk of losing flexibility under significant demand variation, for some parameter values …
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It is commonly assumed that friendship should generally benefit agents' ability to tacitly coordinate with others. However, this has never been tested on two "opposite poles" of coordination, namely, games of strategic complements and substitutes. We present an experimental study in which...
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We study a dynamic Stackelberg differential game between a buyer and a seller of insurance policies in a spectrally negative Lévy framework, in which both parties are ambiguous about the intensity and severity of insurable losses. Both the buyer and seller aim to maximize their expected wealth,...
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We analyze the effect of price caps on equilibrium production and welfare in oligopoly under demand uncertainty. We … find that high price caps always increase production and welfare as compared to the situation without price cap. Price caps … close to marginal cost may lead to zero production, depending on the nature of uncertainty. We characterize the optimal …
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