I study a class of agency problems that are characterized by the existence of an underlying organizational hierarchy. Specifically, I analyze a two forked, three tiered hierarchy and I show that when the private information of the players in the second and in the third tiers of the hierarchy,...

The tendency for the members of a corporation or government to be resistant to change is explored in a model that encompasses two endemic features of such systems. First, the social system is modeled as a hierarchy, and implicit within it is a selection process that determines who advances to...

This paper argues that the international monetary system will evolve into a bipolar structure consisting of a dollar area and a euro area, each of which attracting other countries to their gravitational centers. A deepening and widening of NAFTA and the EU will enlarge the sphere of influence of...