Production-inventory games were introduced in [Guardiola, L.A., Meca, A., Puerto, J. (2008). Production-Inventory games: A new class of totally balanced combinatorial optimization games. Games Econom. Behav. doi:10.1016/j.geb.2007.02.003] as a new class of totally balanced combinatorial optimization games. From among all core-allocations, the Owen point was proposed as a specifically appealing ...

Cooperation can increase the efficiency of commonly–owned renewable resource use. However, received knowledge is that, absent side payments, cooperative solutions are more difficult to achieve the less homogenous the agents involved. We revisit this claim by analyzing how differences in the opportunity costs of resource harvesting affect the scope for Pareto–improving contracts, where contracti...

This paper develops a Bayesian Vector Error Correction Model (BVECM) for forecasting inventory investment in South Africa. The model is estimated using quarterly data on actual sales, production, unfilled orders, price levels and interest rates, for the period of 1978 to 2000. The out-of-sample-forecast accuracy obtained from the BVECM, over the forecasting horizon of 2001:1 to 2003:4, is compa...

We consider a model of resource dependence where only the seller knows the resource reserve. The model captures phenomena such as trust in the relationship and “bribing” for continuation through generous supplies. It also explains supply shocks in equilibrium: privately informed sellers have incentives to reveal their types too late through a supply disruption after which their exploit the cons...

Abstract. Since 2021, Russia has maintained a list of unfriendly countries. This and the import ban introduced in 2014 are some main economic sanctions uses to influence trading partners. paper attempts quantify effect putting partner on countries compared Russian ban. The study data trade flows between its partners from UN COMTRADE database for select agri-food products. Employing gravity fram...

weak economic performance that has been observed in countries with rich natural resources is called resource curse. there have been many studies on resource curse, especially the adverse effects of this phenomenon on economic growth. income inequality or unfair distribution of income is one of the main characteristics of resource rich countries. but, there has not been much research on the effe...

We analyze the contract settlement data of a poultry company who contracts the production of broiler chickens with a group of independent growers. The company originally used rank-order (ordinal) tournaments to compensate their contract growers and later switched to cardinal tournaments. Based on the observed payment mechanism we construct an empirical model of a rank-order tournament game and ...

The question of whether private investors can discriminate between the risk taken by banks is empirically investigated by testing the risk sensitivity of European banks’ subordinated notes and debentures (SND) spreads. A unique dataset of spreads, ratings, accounting and market measures of bank risk is used for a sample of SND issued during the 1991-2000:Q1 period. Moody’s Bank Financial Streng...

In the context of resource allocation on the basis of responsive priorities, Ergin (2002) identifies a necessary and sufficient condition for the deferred acceptance rule to satisfy a consistency principle. In this note we extend this result to the domain of substitutable priorities, complementing results of Kojima and Manea (2010) and Kumano (2009). JEL classification: D63, C78.

We analyze oligopolistic exhaustible-resource depletion when firms can trade forward contracts on deliveries, a market structure prevalent in most resource commodity markets. When market interactions become arbitrarily frequent, all stocks are contracted and subgame-perfect equilibrium allocation becomes perfectly competitive. The result is in contrast with the idea that forward markets can hel...