This paper considers the intertemporal consumption/savings decision when income follows a random walk with drift and the drift coefficient is unknown. Instead agents are Bayesian learners, combining prior and sample information to form a posterior for the drift coefficient and future income....

In this paper I study a model of life-cycle consumption in which individuals react optimally to their own income process but ignore economy wide information. Since individual income is less persistent than aggregate income consumers will react too little to aggregate income variation. Aggregate...

Leniency programs as a tool for cartel detection and cartel destabilization, have been implemented since the early nineties. Theoretical work has shown that leniency programs can be effective in enhancing cartel detection and deterrence, but these effects are not straight-forward. It is even...