We study a symmetric, profit share, common value auction with a twist: One (fixed) Bidder, if not winning the auction, has to enter a partnership with the winner, sharing both expenses and revenue at rate (say) 0 < λ < 1. ...

We prove that under mild conditions individually rational Pareto optima will exist even in the presence of non-convex preferences. We consider decision-makers (DMs) dealing with a countable flow of pay-offs or choosing ...

We prove the existence of monotonic pure strategy equilibrium for many kinds of asymmetric auctions with n bidders and unitary demands, interdependent values and independent types. The assumptions require monotonicity only ...

The paper addresses the issue of frequent government interventions in the exchange rate market in the attempt to stabilize the exchange rate. The problem is reduced to a simple comparison between two regimes. In the first ...

The Brazilian government instituted a new regulatory framework for auctioning pre-salt oil reserves to replace the previous concession regime with a profitshare bidding auction. Motivated by the new rules, we present a ...

Negative relationship between risk and incentives, predicted by standard moral hazard models, has not been confirmed by empirical work. We propose a moral hazard model in which heterogeneous risk-averse agents can control ...