This paper develops a hierarchical agency model of deposit insurance. The main purpose of the analysis is to propose a micro-founded model of deposit insurance schemes and study their effects on the behavior of depositors and the monitoring problem for a bank. This paper also characterizes a...

This paper identifies and illuminates a common impossibility principle underlying a number of impossibility theorems in social choice. We consider social choice correspondences assigning a choice set to each non-empty subset of social alternatives. Three simple axioms are imposed as follows:...

We study price formation in securities markets, using the sequential trade framework of Glosten and Milgrom (1985). This paper makes one basic methodological advance over previous research on sequential securities trading: we allow traders to choose from n trade sizes in a multi-period market,...