In an overlapping generations model with Cournot competition on the goods market it is shown that a continuum of stationary states and perfect foresight trajectories exists with unemployment at arbitrary low wages. Decisive for this is the influence that different forecast functions have on the objective demand curve, even though they are consistent with perfect foresight. With an example it is...

In perfect competition, there is a sense in which no supplier makes any purposeful, meaningful decision regarding the price that it sets. Rather, because of perfect substitutability between all products (recall the assumption of homogenous goods in a perfectly-competitive market), firms are all price-takers. A view of firms as price-takers is incompatible with the notion that we would now like ...

The construction of joins and secant varieties is studied in the combinatorial context of monomial ideals. For ideals generated by quadratic monomials, the generators of the secant ideals are obstructions to graph colorings, and this leads to a commutative algebra version of the Strong Perfect Graph Theorem. Given any projective variety and any term order, we explore whether the initial ideal o...

This paper develops a framework to systematically study how changes in market conditions affect the equilibrium inequality between heterogeneous agents. By stating our setting as competition for shares, we can derive predictions vastly different models. approach allows us identify common structure, e.g., monopolistic competition, perfect or prizes, that explains why these models deliver similar...

By using recent results from graph theory, including the Strong Perfect Graph Theorem, we obtain a unifying framework for a number of tractable classes of constraint problems. These include problems with chordal microstructure; problems with chordal microstructure complement; problems with tree structure; and the “all-different” constraint. In each of these cases we show that the associated mic...

A graph G is perfect if for every induced subgraph H, the chromatic number of H equals the size of the largest complete subgraph of H, and G is Berge if no induced subgraph of G is an odd cycle of length at least 5 or the complement of one. The “strong perfect graph conjecture” (Berge, 1961) asserts that a graph is perfect if and only if it is Berge. A stronger conjecture was made recently by C...

Our proof (with Robertson and Thomas) of the strong perfect graph conjecture ran to 179 pages of dense matter; and the most impenetrable part was the final 55 pages, on what we called “wheel systems”. In this paper we give a replacement for those 55 pages, much easier and shorter, using “even pairs”. This is based on an approach of Maffray and Trotignon.

We investigate multi-round team competitions between two teams, where each team selects one of its players simultaneously in each round and each player can play at most once. The competition defines an extensive-form game with perfect recall and can be solved efficiently by standard methods. We are interested in the properties of the subgame perfect equilibria of this game. We first show that u...