Abstrakt
The topic of this dissertation is equilibrium selection in models with incomplete and imperfect information. In the first two chapters, I focus on firms' decision problems with a structural uncertainty and imperfect monitoring.
In the second chapter, I investigate the social efficiency of free entry in homogeneous product markets. In general, free entry is considered desirable for a society from a social welfare point of view and thus, represents traditional wisdom among economic professions.
In the final chapter, I study the long run outcomes of the belief-based learning process in the infinitely repeated prisoner's dilemma with anonymous random matching and unknown payoff distributions played by a continuum of players. In games with a unique strict Nash equilibrium, such as the prisoner's dilemma, the standard belief-based learning models predict the Nash equilibrium as the only long-run outcome of the learning process.