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At time $(t-1)$, the investor buys some risk free bond, $B_{t-1}$ and some risky asset $X_{t-1}$ at price $P_{t-1}$, such that the budget constraint holds, i.e. $$ W_{t-1} = B_{t-1} + P_{t-1}X_{t-1} $$ At period $t$, one unit of risk free bond pays off one unit, so $B_{t-1}$ units of risk free bonds pays off $B_{t-1}$ units of wealth at $t$. For a risky ...


For a slightly different perspective and somewhat newer tools, I would suggest "Oligopoly Pricing: Old Ideas and New Tools" by Xavier Vives.


Per our comments above, I believe the expression you have is incorrect. Your confusion is worsened by some poor terminology use. Gross return can be written as $R = 1 + \frac{a}{w}$ where $w$ is initial wealth (or more accurately, the initial investment) and $a$ is new cash flow generated by the investment. So for example, with $w = 100$ and $a = 5$, the ...


While taking Industrial Organization I remember working with: Strategies and games: theory and practice by Dutta Introduction to industrial organization by Cabral Industrial organization: theory and applications by Shy Industrial Organization: Markets and Strategies by Belleflamme and Peitz The first two are rather introductory while third and forth are ...


I would recommend the The theory of Industrial Organization and the Game Theory from Jean Tirole

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