This work is focused on identifying a circular pull production control system (PPCS) and make emphasis on the presence of a stability attribute. It is an introductory paper to an extended study of macroeconomic financial stability in a physically open but systemic closed system. Previous work...

The paper presents a model of the evolution of social norms. When a norm is costly to follow and people do not derive benefits from following it except for avoiding social disapproval, the norm erodes over time. Tip percentages, however, increased over the years, suggesting that people derive...

Some economists believe that social norms are created to improve welfare where the market fails. I show that tipping is such a norm, using a model in which a waiter chooses service quality and then a customer chooses the tip. The customer’s utility depends on the social norm about tipping and...

This paper examines optimal social linkage when each individual's repeated interaction with each of his neighbors creates spillovers. Individuals differ across rates of time preference. A planner must choose a local interaction system or neighborhood design before observing the realization of...

In this paper we argue that authorities aid cooperation by means of direct coordination or the enforcement of pre-commitment devices such as contract laws.Credible threats of violence allow this role. In a local interaction model, an authority forms if mutually connected individuals with...

This paper aims to make a public statement about the strategy implemented by Microsoft in order to reinforce its market power across the networked users of Windows Operative System, and Xbox Games Console. It is presented an economic view that supports the anticipating (not predatory) position...

In the model of Funaki and Yamato (1999) the tragedy of the commons can be avoided with pessimistic players, while this does not hold for optimistic players. We propose a new core concept to overcome this puzzle and provide numerical simulations of simple games where the conclusions coincide or...

We deal with tastes and preferences, revising the linkages between both in order to analyse the special case where we express preferences to goods that do not appeal to us. We deduce the concept of a deconstructed demand and define two types of goods (embarrassing and reputable). With the help...

In this paper we prove the existence of continuous order-preserving functions on subsets of ordered Banach spaces using a constructive approach.