This paper analyses the dynamics of a nonlinear Cournot duopoly with general isoelastic demand (quasi-linear preferences) and quantity-setting firms that have incomplete information about the market demand. Unlike existing papers, we propose a model where the price elasticity of demand is different from one. This causes interesting local and global dynamic events that cannot be observed in the ...

Vote-trading is common practice in committees and group decision-making. Yet we know very little about its properties. Inspired by the similarity between the logic of sequential rounds of pairwise vote-trading and matching algorithms, we explore three central questions that have parallels in the matching literature: (1) Does a stable allocation of votes always exists? (2) Is it reachable throug...

Since the 2005 demonstration of optimal topological chaos in a particular instance of the 2-sector RSS model, the delineation of the optimal policy function for “small” discount factors has remained open. This paper (i) provides an explicit solution when the discount factor is less than the labor/capital-output ratio, (ii) establishes the existence of optimal topological chaos for a non-negligi...

We consider one-to-one matching problems where individuals have preferences over the possible types of the agents on the opposite side of the market. Initially, players know the ‘name’but not the ‘type’ of their potential partners. In this context learning occurs via matching and using Bayes’ rule. Types are assigned to agents as random independent draws from the set of types without replacemen...

This paper identifies two channels through which the economy can generate endogenous inflation and output volatility, an empirical regularity, by introducing model uncertainty into a Lucas-type monetary model. The equilibrium path of inflation depends on agents’ expectations and a vector of exogenous random variables. Following Branch and Evans (2006a) agents are assumed to underparameterize th...

In this paper we study the number of pure strategy Nash equilibria in large finite n-player games. A distinguishing feature of our study is that we allow general potentially multivalued best reply corresponsences. Given the number K of pure strategies to each player, we assign to each player a distribution over the number of his pure best replies against each strategy profile of his opponents. ...

Consider the four possible mergers in a market with three firms: 12, 13, 23, and 123. Which one, if any, will take place? Although the question seems fairly simple, it has not yet been fully answered. The existing literature provides two necessary conditions for a merger: profitability and a non-empty core (i.e., a merger will not be formed if it is unprofitable or if its core is empty). This p...

According to the masonry standard the compressive strength is basically dependent on factors such as the mortar strength and the relative values of unit and mortar strength. However interlocking brick has none or less use of mortar. Therefore there is a need to investigate the behavior of masonry walls using interlocking bricks. In this study a series of tests have been conducted; physical prop...

The paper examines a dynamic model of a financial market with endogenous asset prices determined by short run equilibrium of supply and demand. Assets pay dividends, that are partially consumed and partially reinvested. The traders use fixed-mix investment strategies (portfolio rules), distributing their wealth between assets in fixed proportions. Our main goal is to identify globally evolution...

We develop a model of many-to-many matching with contracts which subsumes as special cases many-to-many matching markets and buyer–seller markets with heterogeneous and indivisible goods. In our setting, substitutable preferences are sufficient to guarantee the existence of stable outcomes; moreover, in contrast to results for the setting of many-to-one matching with contracts, if any agent’s p...