Empirical observations, laboratory experiments, and game theory offer guidance for a prudent person doing repeat business with potentially untrustworthy partners.
Jonathan L. Burke, PhD
, is a professor of economics, in the Business Administration Division of Seaver College, Pepperdine University, Malibu, CA. His research specialty uses general-equilibrium theory to offer a single model of perfect competition as a benchmark to compare various economic models. He seeks to find the breadth of economic environments that are consistent with perfect competition, and establish the determinacy and efficiency of perfectly-competitive equilibrium for intertemporal economic models. His primary teaching blends intermediate microeconomics and game theory to help managers make profitable strategic decisions. He can be reached at firstname.lastname@example.org.