Larry E. Jones, Henry E. Siu, Rodolfo E. Manuelli, Ennio Stacchetti
Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies finding a positive relationship, while others find a negative one. Our objectives in this...
Strategic Pricing when Electricity is Storable (2001)
Garcia, Alfredo, Reitzes, James D., Stacchetti, Ennio
In this paper, we develop a simplified oligopoly model where hydro generators engage in dynamic Bertrand competition. Each player uses a Markov strategy based on the state of water reservoirs at the...
Christopher Phelan, Ennio Stacchetti
The authors thank the co-editor, Nancy Stokey, and three anonymous referees for valuable comments.
Technology (and Policy) Shocks in Models of Endogenous Growth (1999)
Larry E. Jones, Rodolfo E. Manuelli, O Alvarez, Henry Siu For Assistance, The National Science Foundation, Larry Jones, ...
Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies (Kormendi and Meguire (1985)) finding a positive relationship, while others (Ramey and Ramey...
Technology (and policy) shocks in models of endogenous growth, NBER Working Paper No. 7063 (1999)
Larry E. Jones, Rodolfo E. Manuelli, Ennio Stacchetti
Our objective is to understand how fundamental uncertainty can affect the long-run growth rate and what factors determine the nature of the relationship. Qualitatively, we show that the relationship...
With Gross Substitutes, Faruk Gul, Ennio Stacchetti
this paper we study the problem of e#cient production and allocation of indivisible objects among a set of consumers. We assume that the agents' preferences depend on the bundle of objects and...
Renegotiation and Symmetry in Repeated Games (1993)
Abrea, Dilip, Pearce, David, Stacchetti, Ennio
The paper derives a theory of renegotiation-proofness in symmetric repeated games based on a notion of "equal bargaining power." According to consistent bargaining equilibrium a player can mount a...
Toward a Theory of Discounted Repeated Games with Imperfect Monitoring.
Abreu, Dilip, Pearce, David, Stacchetti, Ennio
This paper investigates pure strategy sequential equilibria of repeated games with imperfect monitoring. The approach emphasizes the equilibrium value set and the static optimization problems...
Optimal Cartel Equilibria with Imperfect Monitoring
Dilip Abreu, David G. Pearce, Ennio Stacchetti
There exist optimal symmetric equilibria in the Green-Porter model [5, 8] having an elementary intertemporal structure. Such an equilibrium is described entirely by two subsets of price space and two...
Obsolescence of Durable Goods and Optimal Consumption
Dmitriy Stolyarov, Ennio Stacchetti
We study a model with a durable good subject to abrupt, periodic obsolescence, and characterize the optimal purchasing policy. Consumers optimally synchronize new purchases with the arrival of new...
Fluctuations in Convex Models of Endogenous Growth I: Growth Effects
Larry E. Jones, Rodolfo E. Manuelli, Henry E. Siu, Ennio Stacchetti
Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies finding a positive relationship, while others find a negative one. Our objectives are to...
Fluctuations in Convex Models of Endogenous Growth I: Growth Effects
Larry E. Jones, Rodolfo E. Manuelli, Henry E. Siu, Ennio Stacchetti
Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies finding a positive relationship, while others find a negative one. Our objectives are to...
The Interaction of Implicit and Explicit Contracts in Repeated Agency
David G. Pearce, Ennio Stacchetti
Traditional agency theory assumes that the principal has no more information about the agent's actions than the enforcement authorities have. This is unrealistic in many settings, and in repeated...
Renegotiation and Symmetry in Repeated Games
David G. Pearce, Dilip Abreu, Ennio Stacchetti
It seems reasonable to suppose that in repeated games in which communications is possible, play is determined through a process of negotiation and renegotiation as events unfold. In the absence of a...
How (Not) to Sell Nuclear Weapons.
Jehiel, Philippe, Moldovanu, Benny, Stacchetti, Ennio
The authors consider situations where a sale affects the ensuing interaction between potential buyers. These situations are modeled by assuming that an agent who does not acquire the object for sale...
Strategic Pricing when Electricity is Storable.
Garcia, Alfredo, Reitzes, James D, Stacchetti, Ennio
In this paper, we develop a simplified oligopoly model where hydro generators engage in dynamic Bertrand competition. Each player uses a Markov strategy based on the state of water reservoirs at the...
A Bound of the Proportion of Pure Strategy Equilibria in Generic Games
Faruk Gul, David G. Pearce, Ennio Stacchetti
In a generic finite normal form game with 2(alpha) + 1 Nash equilibria, at least alpha of the equilibria are nondegenerate mixed strategy equilibria (that is, they involve randomization by some...
Toward a Theory of Discounted Repeated Games with Imperfect Monitoring
Dilip Abreu, David G. Pearce, Ennio Stacchetti
This paper investigates pure strategy sequential equilibria of repeated games with imperfect monitoring. The approach emphasizes the equilibrium value set and the static optimization problems...
Obsolescence of Durable Goods and Optimal Consumption
Ennio Stacchetti, Dmitriy Stolyarov
We study a model with a durable good subject to abrupt, periodic obsolescence, and characterize the optimal purchasing policy. Consumers optimally synchronize new purchases with the arrival of new...
Sequential Equilibria in a Ramsey Tax Model
Christopher Phelan, Ennio Stacchetti
This paper presents a full characterization of the equilibrium value set of a Ramsey tax model. More generally, it develops a dynamic programming method for a class of policy games between the...
This paper offers a noncooperative behaviourally-founded solution of the complete information bargaining problem where two impatient individuals wish to divide a unit pie. We formulate the game in...
Sequential equilibria in a Ramsey tax model
Christopher Phelan, Ennio Stacchetti
This paper presents a full characterization of the equilibrium value set of a Ramsey tax model. More generally, it develops a dynamic programming method for a class of policy games between the...
Technology (and policy) shocks in models of endogenous growth
Larry E. Jones, Rodolfo E. Manuelli, Ennio Stacchetti
Our objective is to understand how fundamental uncertainty can affect the long-run growth rate and what factors determine the nature of the relationship. Qualitatively, we show that the relationship...
How (not) to sell nuclear weapons
Ehiel, Philippe, Benny Moldovanu, Ennio Stacchetti
We study the problem of a seller who wants to maximize her revenue in situations where the outcome of the sale affects the nature of the future interaction between agents. We model those situations...
Auction Design for the Colombian Electricity Market
Colombia deregulated its electricity sector and created a new market for electricty in July 1995. The spot market price is determined by a daily auction among the producers. Though the auction is...
Technology (and Policy) Shocks in Models of Endogenous Growth
Larry E. Jones, Rodolfo E. Manuelli, Ennio Stacchetti
Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies (Kormendi and Meguire (1985)) finding a positive relationship, while others (Ramey and Ramey...
Insider Trading With a Random Deadline
RenÈ Caldentey, Ennio Stacchetti
We consider a model of strategic trading with asymmetric information of an asset whose value follows a Brownian motion. An insider continuously observes a signal that tracks the evolution of the...