This article investigates a two-period lived overlapping-generations (OLG) model that incorporates financial intermediation. A risk-neutral bank offers loan and deposit contracts that insure risk-averse agents against idiosyncratic income shocks. Agents prefer financial intermediation to capital...

It is commonly believed that licensing of cost reducing technology increases welfare. We show that technology licensing by an outside innovator may reduce welfare when the technology is not useful for all final goods producers. Technology licensing reduces welfare if cost reduction by the...

We study the relationship between imperfect discrimination, similarity, and stochastic transitivity in generalized versions of Perturbed Utility (Fudenberg et al. in Econometrica 83(6):2371–2409, 2015) and Fechnerian models (Debreu in Econometrica 26(3):440–444, 1958). We show that these...

We study a model in which agents with single-peaked preferences can participate in a costly voting procedure to determine the value of a one-dimensional variable. We show that, for all positive participation costs and all profiles of individual preferences, there exists a unique equilibrium...