Many consumption/production processes cannot be interrupted without significant loss of utility/ouput. In continuous-time equilibrium analysis, the structure of the demand for flows that results can lead to prices containing, in addition to charge accumulating over time at a finite rate, other...

We consider an infinite-horizon inter-generational economy with identical agents differing only in their inherited wealth and with a constant-returns-to-scale technology using capital and labour (called "effort") and displaying a purely idiosyncratic risk. If effort is contractible, full...

Under which circumstances do oligopolists have an incentive to share private information about a stochastic demand or stochastic costs? We present a general model which includes virtually all models of the existing literature on information sharing as special cases. The analysis reveals that in...

In Part A of the present study, subtitled The Consumption Function as Solution of a Boundary Value Problem, Discussion Paper No. TE/96/297, STICERD, London School of Economics, we formulated a Brownian model of accumulation and derived sufficient conditions for optimality of a plan generated by...

The thesis of this paper is that human capital is inalienable: it cannot be bought or sold. Control of physical capital proved the means by which one agent influences another. That is, the pattern of property rights over physical assets is important in the determination of incentives. Recent...

This paper presents a model of a search process for the best outcome of many multi-stage projects. The branching structure of the search environment is such that the pay-offs to various actions are correlated; nevertheless, it is shown that the optimal strategy is given by a simple reservation...

Consider an entrepreneur whocneeds to raise funds from an investor, but cannot commit not to withdraw his human capital from the project. The possibility of a default or quit puts an upper bound on the total indebtedness from the entrepreneur to the investor at any date. We characterize the...

This paper examines the problem of distilling conflicting interpersonal comparisons into a single set of interpersonal comparisons. The mapping that achieves this has a richer co-domain than all social choice problems (and a richer domain than most social choice problems). The set of mappings...

This paper studies the optimal selling procedures for a monopolist, when consumers valuations are unknown and there are fixed costs. The fixed costs introduce a positive externality among customers: each customer benefits from the presence of others who help cover the fixed costs. In this...