The Klein-Leffler (1981) model of product quality does not explain why high-quality firms would dissipate the rents they earn from quality- assuring price premia, and it relies on consumers knowing the cost functions of firms. In the present paper, consumers do not know any firm's cost of...

Because civil-law systems hire unproven jurists into career judiciaries, many maintain elaborate incentive structures to prevent their judges from shirking. We use personnel data (backgrounds, judicial decisions, job postings) on 275 Japanese judges to explore general determinants of career...

A convicted criminal suffers not only from public penalties, but from stigma, the reluctance of others to interact with him economically and socially. Conviction can convey useful information about a person, which makes stigmatization an important and legitimate function of the criminal justice...

Our one-page reply to Whinston and Siegal's forthcoming AER article correcting and elaborating our 1991 AER article.

Consider a Bertrand model in which each firm may be inactive with a known probability, so the number of active firms is uncertain. This simple model has a mixed-strategy equilibrium in which industry profits are positive and decline with the number of firms, the same features which make the...

Randolph Sloof has written a comment on the lobbying-as-signalling model in Rasmusen (1993) in which he points out an equilibrium I missed and criticizes my emphasis on a particular separating equilibrium. In this response, I discuss how to interpret multiple equilibria in games and how to...

Richard Posner suggests several arguments for increasing health care spending on males and reducing it on females in his book, Aging and Old Age . I offer a new formalization of his verbal argument.

This article addresses issues that arise in agency law when agents make contracts on behalf of principals. The main issue is whether the principal should be bound when the agent makes a contract with some third party on his behalf which the principal would immediately wish to disavow. The...

It is well known that risk increases the value of options. This paper makes that precise in a new way. The conventional theorem says that the value of an option does not fall if the underlying option becomes riskier in the conventional sense of the mean-preserving spread. This paper uses two new...

I am revising my game theory book, which is due at the publisher's September 1, 1999. This is the preface, which discusses changes I have made.