The main goal of this paper is to analyze the nature of long-term liquidity contracts that arise between lenders and borrowers in the absence of perfect enforceability and when both parties are financially constrained. We study an infinite horizon dynamic contracting model between a borrower and...

The question this paper addresses is whether a government can regulate a Cournot oligopolist market to give higher level of welfare without changing either the strategic variable (output quantity) or the way prices are determined (by an auctioneer). The problem is set as a two- stage game played...

In this paper, we study an auction where bidders only know the number of potential applicants. After seeing their values for the object, bidders decide whether or not to enter the auction. Players may not want to enter the auction since they have to pay participation costs. We characterize the...

Une importante littérature empirique est dévolue à la question du lien entre les facteurs financiers et les performances économiques des firmes. Dérivées du rejet de l’hypothèse classique de non incidence de la structure financière sur la dépense ou inscrites plutôt dans une logique...

This article presents an equilibrium concept that, contrary to the traditional walrasian one, allows for the unbalance between supply and demand in different markets, making easier the analysis of those situations in which they differ persistently, as in the case of the labor market....

The Commission was asked to review the National Third Party Access Regime for Natural Gas Pipelines. The review sought to assess the benefits and costs of the Regime, including its effects on investment. The Commission’s preliminary findings were released for public comment in December 2003...

Much attention has been paid to alternative fuel sources of late. Ethanol has been a politically popular alternative fuel additive and has recently been pushed to the forefront as a leading replacement to MTBE as an oxygenate. This paper examines the potential markets for ethanol, including...

Recent work suggest that Cournot oligopolists competing in a spatial model, with uniform distribution of consumers, agglomerate at the center of the market. This paper analyzes the robustness of this result with a general symmetric distribution of consumers.

This paper discusses the economics of academic journal publishing. It presents data on pricing of journals to libraries by non-profit and commercial publishers. It advocates the view that scholars should refrain from doing free refereeing for overpriced journals.

Clearinghouse models of online pricing---such as Varian (1980), Rosenthal (1980), Narasimhan (1988), and Baye-Morgan (2001)---view a price comparison site as an 'information clearinghouse' where shoppers and loyals obtain price and product information to make online purchases. These models...