The aim of this paper is to investigate the relationship between heterogeneity at the firm level and the aggregate behavior of the industry as a whole. Empirical evidence on firm behavior documents the existence of widespread heterogeneity among firms in any industry, both cross- sectionally and...

The logic of the linkage principle of Milgrom and Weber (1982) extends to price discrimination. A non-linear pricing monopolist who sells to a single buyer always prefers to commit to publicly reveal information affiliated to the valuation of the buyer.

This paper explores the effect of organizational structure - in terms of the allocation of authority - on the rate of innovation in multi-unit organizations such as retail chains and multi-plant manufacturers. A computational model is developed in which store managers continually search for...

The aim of the paper is to provide guidelines in order to make meaningful comparisons of heterogeneous distributions when incomes are adjusted in order to accommodate differences in needs. We emphasize that the choice of the equivalent income function and the system of weights associated to the...

This paper reconsiders local stability in the saddlepoint sense. Market time and the root of convergence are determined endogenously using partial differential equations; consequently, there is not need of the resort to any deus-ex-machina dynamics to justify an initial jump in one of the...

The transition pattern of post schooling individuals, displaced workers and immigrants to the labor market has similar characteristics. Unemployment falls quickly as workers first find blue-collar jobs, followed by a gradual movement to white-collar occupations. For immigrants the transition...

We provide empirical evidence that risk sharing enhances specialization in production. To the best of our knowledge, this well-established and important theoretical proposition has not been tested before. Our empirical procedure is summarized as follows. First, we construct a measure of...

No abstract.

We build a model of imperfect competition where firms can sell for cash or in-kind payments. Barter is indivisible, and there is no double coincidence of wants. Despite these deficiencies, barter emerges in equilibrium as a means of price discrimination if market power is sufficiently...

The paper studies the problem of volatility modeling and estimation of high-frequency data undercontinuous record asymptotics. The approach decomposes the observed data into pricediffusion and stationary components. The diffusion component may be identified as the"true" value of the underlying...