We propose a version of Townsend’s [17] model of costly audits where the agents’ types are correlated. Audits are used because agents have a limited ability to bear risk so that the Full Surplus Extraction (FSE) scheme á la Crémer and McLean [5,6] and McAfee and Reny [13] are suboptimal....

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(Sous la direction de Michel Poitevin) Impartition et sous-traitance apparaissent souvent comme des synonymes : pourtant, les deux termes recoupent des réalités distinctes. La sous-traitance renvoie aux modalités - économiques ou légales - de toute forme de délégation. L'impartition...

I characterize a generalization of the negligence rule to assign compensating damages in an accident involving multiple tortfeasors. These tortfeasors have the opportunity to undertake spending in prevention and the rule is designed to provide them with the best incentives to do so. I study the...

We construct a model of valuation to assess the financial fragility of a set of firms in a closed economy. A firm is identified with a possibly infinite random sequence of benefits. Firms with negative benefits in a given period are said to be in distress and need liquidity to refinance their...