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We utilize the analytical construct of a stochastic supply function to provide an aggregate representation of a finite … collection of standard deterministic supply functions. We introduce a consistency postulate for a stochastic supply function that … may be satisfied even if no underlying deterministic supply function is rationalizable in terms of profit maximization …
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We investigate the effects of inequality in wealth on the incentives to contribute to a public good when agents are inequity averse and may differ in ability. We show that equality may lead to a reduction of public good provision below levels generated by purely selfish agents. But introducing...
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Most contracts that individuals enter into are not written from scratch; rather, they depend upon forms and terms that have been successful in the past. In this paper, we study the structure of form construction contracts published by the American Institute of Architects (AIA). We show that...
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Recent studies indicate that firms often outsource standard and simple tasks, while keeping complex and important inputs inside their boundaries. This observation is difficult to reconcile with the property rights approach of the firm, which suggests that important components should be...
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