We study the problem of marriage formation and marital distribution in a two-period model of matching, extending the matching with bargaining framework of Crawford and Rochford (1986). We run simulations to find the effects of alimony rate, legal cost of divorce, initial endowments, couple and...

In this paper, we introduce interdependent preferences to a classical one-to-one matching problem that allows for the prospect of being single, and study the existence and properties of stable matchings. We obtain the relationship between the stable set, the core, and the Pareto set, and give a...

In this paper we examine the welfare effects of government's preferences over consumption and investment spending under different methods of financing in a two-period OLG model. The government has a utility function defined over the decomposition of her spending over two periods and raises funds...

This paper shows that unregulated decentralized equilibrium is viable under increasing returns technologies in an overlapping generations model of production with cash-in-advance constraints. We also demonstrate that the model exhibits both the Tobin effect and the reverse Tobin effect.

The aim of this paper is to scrutinize whether the equilibrium exchange rate framework could contribute to the understanding of misalignments in the real exchange rate in Turkey and whether this could be used as a guideline for policy interventions by the monetary authorities. Estimation results...

This paper shows that in an incomplete information situation if the set of states of the society which occur with positive probability satisfies 'connection' condition, then closure condition will be satisfied by all social choice sets. It then follows from Jackson's (1991) two fundamental...

We examine the issue of learning in a generalized principal-agent model with incomplete information. We show that there are situations in which the agent prefers a Bayesian regulator to have more information about his private type. Moreover, the outcome of the Bayesian mechanism regulating the...

This paper illustrates on a simple model of production economy how the concept of partial equilibrium can be in an unresolvable conflict with the general equilibrium.

In this paper, we use a two-period one-to-one matching model with incomplete information to examine the effect of changes in divorce costs on marital dissolution. Each individual who has a nontransferable expected utility about the quality of each potential marriage decides whether to marry or...

In this paper, we study the long-played, yet until now unmodeled, college admissions game over early admissions plans using a many-to-one matching framework. We characterize the equilibrium strategies of each college involving its early quota out of its total capacity, and the set of admissible...