This Paper studies how an institution such as markets affects the evolution of mankind. My key point is that the forces …

This paper examines the properties of exams and markets as alternative allocation devices under borrowing constraints …. Exams dominate markets in terms of matching efficiency. Whether aggregate consumption is greater under exams than under … markets depends on the power of the exam technology; for a sufficiently powerful test, exams dominate markets in terms of …

We compare the performance of markets and tournaments as allocative mechanisms in an economy with borrowing constraints … different qualities). With perfect capital markets both mechanisms achieve the efficient allocation, though markets generate … constraints are present, however, tournaments dominate markets in terms of aggregate output and, for sufficiently powerful …

definitions have focused on identifying trading markets (defined by the ‘law of one price’) or anti-trust markets (identified by …

We experimentally examine the effects of flexible and fixed prices in markets for experience goods in which demand is … driven by trust. With flexible prices, we observe low prices and high quality in competitive (oligopolistic) markets, and … high prices coupled with low quality in non-competitive (monopolistic) markets. We then introduce a regulated intermediate …

Centralized markets with large numbers of buyers and sellers are generally thought of as being competitive and well …-functioning. However, an important role of centralized markets is matching heterogeneous products, such as fish, to buyers of these …

How do firms' sales interact across markets? Are foreign and domestic sales complements or substitutes? Using a large … firms' demand on foreign markets to instrument yearly variations in exports. We use alternatively as instruments product …