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The analysis of economies of specialization at the individual level by Yang & Shi (1992) and Yang & Ng (1993) is combined with the Dixit & Stiglitz (1977) analysis of monopolistic-competitive firms to show that, ignoring administrative costs and indirect effects (such as rent-seeking), even if...
Persistent link: https://www.econbiz.de/10005170372
Johnson (1953-54) offered a powerful explanation for the existence of equilibrium tariffs when he showed that governments face incentives to deviate from free trade even in the face of retaliation by their trading partners. Subsequent analyses by Kennan and Riezman (1988) and Syropoulos (2002)...
Persistent link: https://www.econbiz.de/10005702601
formed if members of the coalition are connected on a communication network, or a graph. We offer a characterization of non …-manipulable division rules without any assumption on the structure of communication network. As corollaries, we obtain a number of earlier … characterization results established with the assumption of complete network (complete graph) in various specialized settings. Moreover …
Persistent link: https://www.econbiz.de/10005130230
We model a hierarchy consisting of possibly corrupted agents who process information, and consider the problem of designing the efficient hierarchy structure and configuring the agents who differ in their honesty. If the only role of agents is to report the information to their direct superior,...
Persistent link: https://www.econbiz.de/10005130245
not provide a clear insight on how a modern system of private electronic money would work and how the necessary network …
Persistent link: https://www.econbiz.de/10005342271
In this paper, we consider the network as an alternative trading environment to the market. The main distinctive … feature of the network transaction is the dependence of buyers' purchasing behavior, which makes all consumers not equally … valuable to a seller. We characterize the optimal behavior of a seller and consumers in a network. A seller's strategy of …
Persistent link: https://www.econbiz.de/10005702702