Most analyses of equilibrium with imperfect information have assumed that individuals know the distribution of possibilities in the market. When individuals do not know the distribution, marginal cost pricing is not generally optimal. In a two-price example it is shown that individuals with...

It is feasible in some competitive equilibria with externalities to shift some externality costs among different agents in the economy. However, simply shifting costs will not, in general, result in efficient allocation decisions by all agents, since the magnitude of externality costs depends on...

This article examines the effects from introducing a "frictionless" legal system into a model of competitive equilibrium with externalities. In a traditional negligence-contributory negligence legal system, there are two important legal parameters under "due care" standards. This paper relates...

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We study the steady-state equilibrium of models where individuals meet pairwise in a costly stochastic search process and negotiate contracts to product output. Different meetings yield different outputs, and so an individual in a contract may wish to continue search to find a better match. If...

Pricing congested facilities above marginal production cost is a conventional approach to improving resource allocation. Where everyone is producing the same externality, a uniform price (in excess of marginal cost by the value of the externality) permits the competitive equilibrium to be Pareto...

This article presents a model of individual behavior in the purchase and utilization of energy-using durables. The tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized. Using data on both the purchase and utilization of room air...

The key question which the Federal Energy Administration's Project Independence Report attempts to answer is the level of U.S. oil imports under different world oil prices. The three essential components of the model which produces the forecasts -- oil and natural gas supply, energy demand, and...

This paper applies methods for analyzing data from samples that have been chosen by restricting the target population in discernible ways to date from a 1976 experiment in time-of-day pricing of electricity for residential customers in Arizona. We find that whereas conventional estimation...