We implement the core correspondence in Subgame Perfect Equilibrium using a simplesequential mechanism in which firms propose a salary to each worker (in the first stage). Then ,each worker accepts at most one proposal (second stage). Moreover, we show that, if agents'preferences are additive,...

This paper analyzes the problem of designing mechanisms to implement efficient solutions in economies with externalities. We provide two simple mechanisms implementing the Pigouvian Social Choice Correspondence in environments in which coalitions can be formed. Finally, we study economies in...

This paper provides three simple mechanisms to implement allocations in the core of matching markets. We analyze some sequential mechanisms which mimic matching procedures for many-to-one real life matching markets. We show that only core allocations should be attained when agents act...

We characterize the incentive compatible allocation that maximizes the expected social surplus in a single-unit sale when the efficient allocation is not implementable. This allocation may involve no selling when it is efficient to sell. We then show that the English auction always implements...

This paper studies the sequential mechanisms which mimic matching procedures formany-to-one-real-life matching markets. We provide a family of mechanisms implementing thestudent´ optimal allocation in subgame perfect equibrium.

This paper studies simple hiring procedures for job markets. We show that when agents act strategically only individually rational outcomes should be expected. Moreover, If agents can form unions, thereby gaining the possibility to commit on the decision to be chosen, only stable allocations are...

We extend Myerson's (1981) model by allowing for uncertainty about the number of bidders. In such extension the Revenue Equivalence Theorem still holds and the optimal allocation rule remains the same. Hence, the optimal auction can be implemented with an appropriate reserve price. Nonetheless,...

This article considers a two-sided private information model. We assume that two exogenouslygiven qualities are offered in a monopolistic market. Prices are fixed. A low quality seller choosesto be either honest (by charging the lower market price) or dishonest (by charging the higherprice). We...

This paper tests Bester's (1985, 1987) prediction about the separating role ofcontracts that involve both interest rates and collateral in credit markets. To test thisprediction we use data from natural credit markets and controlled experiments. Using asample of credits to small and medium size...