Most of the available results on the existence of marginal cost pricing equilibrium are unsatisfactory in that they make a survival assumption that is stated as a condition on the production equilibria of the economy. The primary objective of this paper is to provide a relatively elementary...

In a differential information economy with quasi-linear utilities, monetary transfers facilitate the fulfillment of incentive compatibility constraints: the associated ex ante core is generically nonempty. However, we exhibit a well-behaved exchange economy in which this core is empty, even if...

A concept of an egalitarian solution is developed within the framework of cooperative game theory. The solution is designed to capture the interplay between social values (in this case, egalitarianism) and individual behavior. Both the final outcomes possible coalitional deviations are...

Suppose that the authors are interested in the distribution of a set of characteristics over a population. They study a precise sense in which this distribution can be said to be polarized and provide a theory of measurement. Polarization, as conceptualized here, is closely related to the...

We develop the measurement theory of polarization for the case in which income distributions can be described using density functions. The main theorem uniquely characterizes a class of polarization measures that fits into what we call the "identity-alienation" framework, and simultanously...

A principal and an agent enter into a sequence of agreements. The principal faces an interim participation constraint at each date, but can commit to the current agreement; in contrast, the agent has the opportunity to renege on the current agreement. We study the time structure of agreement...