In this paper an optimal control model is presented to design enforcement programs minimizing the social costs from both the market and crackdown.By using the maximum principle we show that performing an enforcement policy that leads to a collapse of the drug market is more likely to be optimal...

Household equivalence scales are not identified from consumer demand data alone. We estimate household equivalence scales using two types of subjective information. First, we use the answers to questions on the income required to attain a given utility level. This is the type of information...

Income expectations play a central role in household decision making. In the life cycle model for example, consumption and savings decisions reflect expectations of future income. In empirical applications where direct information on expectations is not available, it is usually assumed that...

This paper investigates whether transactions where the buyer (or the seller) always moves first, and the seller (or the buyer) always moves second in the exchange gives higher payoffs than an exchange in which it is randomly determined who moves first.We examine the effect of two treatment...

This paper analyzes the portfolio structure of households in the Netherlands. It considers the allocation of financial wealth to two major asset categories, namely saving accounts on the one hand and stocks and bonds on the other hand. The latter category is considered to be more risky than the...

Household surveys often suffer from nonresponse on variables such as income, savings or wealth.Recent work by Manski shows how bounds on conditional quantiles of the variable of interest can be derived, allowing for any type of nonrandom item nonresponse.The width between these bounds can be...

Three groups of sources of supplier dependence are discussed in the literature: factors related to goal mediation, factors related to relation-specific assets, and factors related to network embeddedness. This paper explores the influence on the dependence of ego and alter, as perceived by the...

Consider a monopolist who sells a durable good, and repairs the good if it breaks down. Suppose that contracts that specify future repair prices cannot be written, so that there is an aftermarket" situation. When consumers are risk-averse, the monopolist chooses inefficiently high repair prices;...