Showing 1 - 10 of 131
We show that in almost every economy with separable externalities, every competitive equilibrium can be Pareto improved … in economies with externalities. It shows that policy makers should look for good tax packages that help everybody …
Persistent link: https://www.econbiz.de/10005593157
The competitive market structure of a decentralized economy is converted into a self-policing system treating the bureaucracy and enforcement of the legal system endogenously. In particular we consider money systems as constructs to make agents' economic strategies predictable from knowledge of...
Persistent link: https://www.econbiz.de/10005463905
Some two million Americans are currently incarcerated, with roughly six hundred thousand to be released this year. Despite this, little is known about the effects of confinement conditions on the post-release lives of inmates. Focusing on post-release criminal activity, we identify the causal...
Persistent link: https://www.econbiz.de/10005593393
In a previous essay we modeled the enforcement of contract, and through it the provision of money and markets, as a production function within the society, the scale of which is optimized endogenously by labor allocation away from primary production of goods. Government and a central bank...
Persistent link: https://www.econbiz.de/10005593614
We consider an single object auction environment with interdependent valuations and a generalized Vickrey-Clark-Groves allocation mechanism that allocates the object almost efficiently in a strict ex post equilibrium. If there is a significant amount of interdependence, there are multiple...
Persistent link: https://www.econbiz.de/10005463846
The organization of supply relations varies across industries. This paper builds a theoretical framework to compare three alternative supply structures: vertical integration, networks, and markets. The analysis considers the relationship between uncertainty in demand for specific inputs,...
Persistent link: https://www.econbiz.de/10005463854
In our previous paper we built a general equilibrium model of default and punishment in which equilibrium always exists and endogenously determines asset promises, penalties, and sales constraints. In this paper we interpret the endogenous sales constraints as equilibrium signals. By...
Persistent link: https://www.econbiz.de/10005463898
We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment by thinking of assets as pools. The equilibrating variables include expected delivery rates, along with the usual prices of assets and commodities. By reinterpreting the variables, our...
Persistent link: https://www.econbiz.de/10005463908
We consider parametric examples of two-bidder private value auctions in which each bidder observes her own private valuation as well as noisy signals about her opponentÌs private valuation. In such multidimensional private value auction environments, we show that the revenue equivalence between...
Persistent link: https://www.econbiz.de/10005463947
We analyze the problem of fully implementing a social choice set in ex post equilibrium. Weidentify an ex post monotonicity condition that is necessary and -- in economic environments -- sufficient for full implementation in ex post equilibrium. We also identify an ex post monotonicityno veto...
Persistent link: https://www.econbiz.de/10005463973