This paper shows that allowing wealthy individuals to influence the outcome of their trials through the purchase of legal services can be consistent with the optimal penalty literature. Using this analysis, the author reviews some of the advantages and disadvantages of varying the length of jail...

Many recent game-theoretic models suggest that, with asymmetric information, it can be profitable for firms to acquire a reputation for toughness to discourage later entry. The authors identify institutional arrangements that firms must undertake if predatory commitments are to be credible. For...

The authors' note shows that the level of risk-sharing is not likely to increase when a deficit is created. A certain level of insurance can as easily be accomplished under a balanced budget or under a surplus, and the creation of a deficit does not provide a superior means, and probably an...

The authors resurrects an idea due to J. Hirshleifer (1971) by examining how one firm might profit by trading in the securities of other firms whose values are dependent upon the first firm's actions. They focus on the case of entry: can an entrant profit from trading in the securities of an...