A widely used sealed-bid auction is the first-price auction. In this auction, the highest bidder wins the item and pays the price submitted; the other bidders get and pay nothing. The all-pay auction is similar to the first-price auction, except that losers must also pay their submitted bids. The...

This paper reviews the factors and mechanisms that have been driving inequality in Mexico and finds that educational inequality accounts for by far the largest share of Mexico’s variation in earnings inequality. The contribution of inequality of education to inequality of earnings in Mexico is...

There is a growing body of data from game theory and industrial organization experiments that reveals systematic deviations from Nash equilibrium behavior. In this paper, the perfectly rational decision making embodied in Bertrand Nash equilibrium is generalized to allow for endogenously...