The deployment of wind energy is constrained by wind uncontrollability, which poses operational problems on the electricity supply system at high penetration levels, lessening the value of wind-generated electricity to a significant extent. This paper studies the viability of hydrogen production via electrolysis using wind power that cannot be easily accommodated on the system. The potential be...

Consumers with inequity aversion experience some psychological disutility when buying products at unfair prices. Empirical evidence and behavioral research suggest that consumers may perceive a firm’s price as unfair when its profit margin is too high relative to consumers’ surplus. We develop a game-theoretic model to investigate the effects of the consumer’s inequity aversion on a firm’s pric...

The increasing demand for broadband access leads operators to upgrade the existing access infrastructures (or building new access network). Broadband access networks require higher investments (especially passive infrastructures such as trenches/ducts and base station towers/masts), and before making any decision it is important to analyze all solutions. The selection of the best solution requi...

This article is a survey on bargaining theory. The focus is the game theoretic approach to bargaining, both on its axiomatic and strategic counterparts. The application of bargaining theory to large markets and its connections with competitive allocations are also discussed. Journal of Economic Literature classification: C7. Bargaining In the simplest definition, we refer to bargaining as a soc...

Throughout mnany less developed economies of the world, especially those of tropical Africa, a curious economic phenomenon is presently taking place. Despite the existence of positive marginal products in agriculture and significant levels of urban unemployment, rural-urban labor migration not only continues to exist, but indeed, appears to be accelerating. Conventional economic models with the...

We study a repeated version of the Myerson-Satterthwaite bilateral bargaining problem with serially correlated types. We show that effi cient, unsubsidized, and individually rational trade is possible if and only if the expected dynamic virtual surplus from the effi cient allocation is positive. Using this condition, we study the effects of discounting, frequency of interaction and persistence ...

If the government has the ability and willingness to redistribute the surplus created by an external investor, why do we still observe resistance to such investment, sometimes in the form of destruction of productive assets? And how does such destructive action a¤ect a government’s “investor-friendliness”? In a simple model where di¤erent social groups have di¤erent and uncertain valuation of p...

In a standard sequential pricing game, I model how buyers attend to information about product quality when prices are easily observable using ìrational inattentionî theory (Sims [2003]). Rational inattention in this setting produces two possible equilibria: one where the entire surplus goes to buyers and one where most of the surplus goes to sellers of high quality goods. I show that there are ...

We discuss network neutrality regulation of the Internet in the context of a two-sided market model. Platforms sell broadband Internet access services to residential consumers and may set fees to content and application providers on the Internet. When access is monopolized, cross-group externalities (network effects) can give a rationale for network neutrality regulation (requiring zero fees to...

I show that the equilibrium distribution of matches associated with the empirical transferable utility (TU) one-to-one matching model introduced by Choo and Siow (2006a,b) corresponds to the fixed point of system of K + L nonlinear equations; with K and L respectively equal to the number of discrete types of women and men. I use this representation to derive new comparative static results, show...