In this paper we extend the deterministic model of Dechert and Brock (forthcoming) to stochastic models. First, we consider the lake game in a Brock and Mirman framework and show what happens to the Skiba point when there is uncertainty in the model. Second, we develop the model as an optimally...

Long-term observers of urban communities know that the housing quality distributions of communities and the changes of these distributions over time encompass not one but a variety of patterns. The equilibrium outcome derived from the housing market literature explains one pattern of change....