We introduce neighborhood effects in the costs of human capital acquisition into a model of statistical discrimination in labor markets. This creates a link between the level of segregation and the likelihood and extent of statistical discrimination. As long as negative stereotypes persist in...

This article examines the determinants of steady state trust in a population of principals and agents, where the former learn from experience using boundedly rational procedures. For any distribution of agent types, the long-run distribution of principal behaviour is characterised. Heterogeneity...

Robbery is a serious, widespread and sometimes violent crime resulting each year in costs to victims of several billion dollars. Data on the incidence of robbery reveals certain striking racial disparities. African-Americans are more likely to be victims, arrestees and prisoners than are members...

Successful collective action is usually accompanied by explicit systems for punishing noncooperators. A simple model of collective action is presented in which such punishment opportunities are available, and some individuals have a taste for exercising them. The model suggests that many of the...

We study certain classes of supermodular and submodular games which are symmetric with respect to material payoffs but in which not all players seek to maximize their material payoofs. Specially, a subset of players have negatively interdependent preferences and care not only about their own...

This paper traces recent developments in economic theory from the perspective of Thorstein Veblen's methodological distinction between teleological and evolution modes of scientific thought. It is argued that the imposition of rational behavior at the individual level prevents neoclassical...

We study certain classes of supermodular and submodular games which are symmetric with respect to material payoffs but in which not all players seek to maximize their material payoffs. Specifically, a subset of players have negatively interdependent preferences and care not only about their own...