We analyse a model of partially revealing, rational expectations equilibrium with diverse information, endogenous beliefs formation and uncertain distribution of risk aversion. More risk averse agents are then more optimistic. Such a positive correlation is important for collective decision...

This paper presents a gift-exchange labor market model in which workers are prone to exhaustion. Although norms of reciprocity and fairness indicate that firms and workers must exchange 'gifts' in the form of higher wages and higher effort respectively, these incentives are mitigated by the...