We consider a market consisting of two populations, termed rich and poor for convenience. If a product is priced such that it is very expensive for the poor, but affordable to the rich, it becomes a status symbol for the poor and this makes it more desirable for the poor. At a lower price the...

For most multi-period decision-making problems, it is generally well-accepted that the influence of information about later periods on the optimal decision in the current period reduces as we move farther into the future. If and when this influence reduces to zero, the corresponding problem...

In an influential paper Mankiw, Romer, and Weil (1992) argue that the evidence on the international disparity in per-capita income levels and growth rates is consistent with a standard Solow model, once it has been augmented to include human capital as an accumulable factor. In a study on...