The value of communication in monetary policy is analyzed in a model in which expectations need not be consistent with central bank policy - and, therefore, unanchored - because agents face difficult forecasting problems. When the central bank implements optimal policy without communication, the...

We study the cores of non-atomic market games, a class of transferable utility cooperative games introduced by Aumann and Shapley [2], and, more in general, of those games that admit a na-continuous and concave extension to the set of ideal coalitions, studied by Einy, Moreno, and Shitovitz...

Globalization threatens "good jobs at good wages", according to overwhelming public sentiment. Yet professional discussion often rules out such concerns a priori. We instead offer a framework to interpret and address these concerns. We develop a model in which monopolistically competitive firms...

We study an optimal weak collusion-proof auction in an environment where a subset (or subsets) of bidders may collude not just on their bids but also on their participation. Despite their ability to collude on participation, informational asymmetry facing the potential colluders can be exploited...

Estimates of democracy's effect on the public sector are obtained from comparisons of 142 countries over the years 1960-90. Based on three tenets of voting theory - that voting mutes policy preference intensity, political power is equally distributed in democracies, and the form of voting...

This paper examines breakup fees and stock lockups as devices for prospective target firms to encourage bidder participation in takeover contest. We show that, unless bidding costs for the first bidder are too high, breakup fees provide for the socially desirable degree of competition and ensure...

This paper develops minimum distance estimators for nonparametric models where the dependent variable is known only to fall in a specified group with observable thresholds, while its true value remains unobserved and possibly censored. Such data arise commonly in major U.S and U.K data sets...

This paper considers a long-standing question in the field of Industrial Organization: Can an incumbent firm price and advertise so as to deter entry that otherwise would be profitable? For the most part, the first economists to consider this question give affirmative answers. Braithwaite (1928)...

We show that a general process of decision making involves uncertainty about two different sets: the domain of the acts and another set, which we call the set of models for the decision maker. We study the effect of different information structures on the set of models, and prove the existence...

This paper examines the relationship between child labor and access to credit at a crosscountry level. Even though this link is theoretically central to child labor, so far there has been little work done to assess its importance empirically. We measure child labor as a country aggregate, and...