We explore two variants of the Bargaining Set in a simple majority gameon income distributions in order to understand the apparent stability of taxschedules in democratic societies, despite the fact that the core of such gamesis empty (no majority Condorcet winner). Those variants are sharper...

This paper introduces efficiency wages designed to provide workers withincentives to make appropriate effort levels, and involuntary unemployment,along the pioneering lines of Negishi (1979), Solow (1979), Shapiro andStiglitz (1984), in a dynamic model involving heterogeneous agents and...

We propose a method to aggregate heterogeneous individual beliefs, givena competitive equilibrium in complete asset markets, into a single “marketprobability” such that it generates, if commonly shared by all investors, thesame marginal valuation of assets by the market (the same equilibrium...

The aim of these lecture notes is to present a few mathematical factsabout the bifurcations of nonlinear difference equations, in a concise andsimple form that might be useable by economic theorists.

This is the revised entry “Temporary equilibrium”, forthcoming in the newedition of The New Palgrave, Lawrence Blume and Steve Durlaub (Eds.), PalgraveMc Millan, 2007. The entry surveys the developments of temporary generalequilibrium theory and its contributions to a better understanding of...