This paper sets up a modified Mundell-type economy embodying both exchange-rate and output expectations, and develops a graphical exposition to explain the conflicting outcome between Krugman's (1991) prediction and the empirical observations in the regime of exchange rate target zones. We find...

We develop a framework to study analytically and quantitatively relentless cross-border casino competition with social-disorder and income-creation externalities. Two bordering casinos compete with each other for the external source of demand of recreational and problem gamblers from the...

The effectiveness of efficiency wage incentives is often jeopardized by perverse organizational corruption. We model organizational corruption as a phenomenon of social interaction and relate the substantial psychological role characterizing the social norm to the corruption problem. We find...