Markov bargaining games

I consider an alternating offer bargaining game which is played by a risk neutral buyer and seller, where the value of the good to be traded follows a Markov process. For these games the existence of a perfect equilibrium is proved and the set of equilibrium payoffs and strategies are characterised. The main results are (a) if the buyer is less patient than the seller, then there will be delays in the players reaching an agreement, the buyer is forced into a suboptimal consumption policy and the equilibrium is ex-ante inefficient, and (b) if the buyer is more patient than the seller, then there is a unique and efficient equilibrium where agreement is immediate

Bargaining and the timing of investment

The joint determination of the timing of investment and wage bargaining is modelled. Two cases are considered: (a) There is an alternating-offer bargaining game over binding wage contracts and production is possible only when agreement is reached. (b) There are no binding contracts so revenue is divided in period-by-period bargaining post-investment. Investment can occur earlier in case (b) than in case (a) and the equilibrium in case (b) can Pareto-dominate the equilibrium with binding contracts. These conclusions depend on players' discount factors

Reputation

We explain what reputation effects are, how they arise and the factors that limit or strengthen them

Dealer behaviour and price volatility in asset markets

Macroeconomic Models

Reputation and perfection in repeated common interest games

We consider a wide class of repeated common interest games perturbed with one-sided incomplete information: one player (the informed player) might be a commitment type playing the Pareto dominant action. As discounting, which is assumed to be symmetric, and the prior probability of the commitment type go to zero, it is shown that the informed player can be held close to her minmax payoff even when perfection is imposed on the equilibrium

Reputation and commitment in two-person repeated games without discounting

Two-person repeated games with no discounting are considered where there is uncertainty about the type of the players. If there is a possibility that a player is an automaton committed to a particular pure or mixed stage-game action, then this provides a lower bound on the Nash equilibrium payoffs to a normal type of this player. The lower bound is the best available and is robust to the existence of other types. The results are extended to the case of two-sided uncertainty. This work extends Schmidt (1993) who analyzed the restricted class of conflicting interest games

XML Security in Certificate Management - XML Certificator

The trend of rapid growing use of XML format in data/document management system reveals that security measures should be urgently considered into next generation's data/document systems. This paper presents a new certificate management system developed on the basis of XML security mechanisms. The system is supported by the theories of XML security as well as Object oriented technology and database. Finally it has been successfully implemented in using C&#, SQL, XML signature and XML encryption. An implementation metrics is evidently presented