The majority of results in the literature on general equilibrium are not for an economy (i.e. given an endowment and preferences), but rather, for a set of economies (i.e. a set of endowments given preferences). Therefore, we argue that the most appropriate robustness result requires perturbing...

[This item is a preserved copy. To view the original, visit http://econtheory.org/] A key to the Coase conjecture is the monopolist's inability to commit to a price, which leads consumers to believe that a high current price will be followed by low future prices. This paper studies the...

We argue that when fiscal policy is endogenously determined, the incentives of redistributive politics associated with its formulation can endogenously add to the uncertainty and volatility that an economy faces. In particular, small shocks may get translated into large fluctuations. Our...

We study and compare the behavioral consequences of honesty and white lie in communication. An honest agent always recommends the ex post optimal policy to the principal, while a white liar may manipulate information but only for the sake of the principal. We identify the effects of honesty and...