Yuk-Fai Fong

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Economics Department




Fields of Research Interests

Industrial Organization, Competition Policy, Dynamic Games, Applied Microeconomic



Published/Accepted Papers


1.     “Liability and Reputation in credence goods markets” (with Ting Liu), Accepted at Economics Letters.  [Download PDF]

2.     “Using Customer Service to Build Clients' Trust” (with Xiaoxiao Hu, Ting Liu and Xiaoxuan Meng), Accepted at Journal of Industrial Economics. [Download PDF]

3.     “Relational Contract, Limited Liability, and Employment Dynamics” (with Jin Li), Journal of Economic Theory, 2017, 169, 270-293. [Download PDF] [Online Appendix]

4.     “Signaling by an Informed Service Provider” (with Frances Xu Lee), Accepted at Journal of Economics and Management Strategy. [Download PDF] [Online Appendix]

5.     Information Revelation in Relational Contracts”, (with Jin Li), Review of Economic Studies, 2017, 84, 277–299. [Download PDF] [Download PDF]

6.     “When Does Aftermarket Monopolization Soften Foremarket Competition” (with Jin Li and Ke Liu), Journal of Economics and Management Strategy, 2016, 25(4), 852–879. [Download PDF] [Online Appendix]

7.     “On the role of verifiability and commitment in credence goods markets”, (with Ting Liu and Donald J. Wright), International Journal of Industrial Organization, 2014, 37, 118-129 [Download PDF].

8.     “Long-Lived Consumers, Intertemporal Bundling, and Collusion” (with Jim Dana), Journal of Industrial Economics, December 2011, 59 (4), 609–629 [Download PDF].

9.     “Product Quality, Reputation, and Market Structure” (with Jim Dana), International Economic Review, November 2011, 52 (4), 1059–1076. [Download PDF]

10.  “Loyalty Rewards Facilitate Tacit Collusion”, (with Qihong Liu), Journal of Economics and Management Strategy, Fall 2011, 20 (3), 739–775. [Download PDF]

11.  Bidding in a Possibly Common-Value Auction”, (with Daniel F. Garrett), Games and Economic Behavior, 70 (2), November 2010, 494-501. [Download PDF]

12.  “Private Information of Nonpaternalistic Altruism: Exaggeration and Reciprocation of Generosity”, B.E. Journal of Theoretical Economics (Advances), 9(1), 2009, Article 1. [Link to Paper] (One of two finalists, 2008 Arrow Prize for Junior Economists)

13.  “The Optimal Degree of Cooperation in the Repeated Prisoner's Dilemma with Side Payments”, (with Jay Surti), Games and Economic Behavior, September 2009, 67 (1), 277–291. [Download PDF] (previously titled “Bribing to Cooperate”)

Appendix: [Omitted Proofs]

Related Note: “Optimal Timing of Side Payments in the Infinitely Repeated Prisoner’s Dilemma” [Download PDF]

14.  “Compensation for Quality Difference in a Search Model of Money” (with Balázs Szentes), International Economic Review, August 2005, 46 (3), 957-971. [Download PDF]

15.  “When do Experts Cheat and Whom do They Target?”, RAND Journal of Economics, Spring 2005, 36 (1), 113-130.     [Download PDF]

16.  “The Identification of Unobservable Independent and Spousal Leisure”, (with Junsen Zhang), Journal of Political Economy, February 2001, 109 (1), 191-202. [Download PDF]


Working Papers by Topics

Dynamic/Repeated Games & Relational Contracts

17. “Negotiated Block Trade, Rebuilding of Trust, and Endogenous Cost of Corporate Control” (with Pak Hung (Albert) Au and Jin Li), 2nd Round R&R at International Economic Review. [Download PDF]

18. “Agent Information Acquisition and Utilization in Relational Contracts” (with Xiaoxiao Hu, Xiaoxuan Meng, and Kirill Novoselov) [First Draft, September 2015; Previously titled “Inducing Stubbornness in Expert”]

19. “A Theory of Player Turnover in Repeated Games” (with Jin Li), Preliminary.

20. “Wait and See” (with Peter Eso).


Market for Expert Services/Credence Goods/Experience Goods

21. “Consumers' Trust in Multi-attribute Experience-good Seller” (with Liu Ting, Xiaoxuan Meng, and Yimeng Zhang) [Download PDF]

22. “Trust Building in Credence Goods Markets” (with Ting Liu and Xiaoxuan Meng). [Download PDF]


Tacit Collusion

23. “Diminishing Marginal Utility and Collusion” (with Ke Liu).


Experimental Economics

24. “Guilt Driven Reciprocity in a Psychological Signaling Game”, (with Chen-Ying Huang and Theo Offerman)