We present a model in which purely monetary inflation systematically affects efficiency, welfare, and relative prices. The model focuses on the microeconomics of trade in search markets under inflation. Inflation, by increasing the cost of holding money, undermines the market's ability to...

This paper describes situations where commitment via delegation is beneficial, even when the delegation is unobservable and the players have the option to play the game themselves. The potential for such benefits depends on the type of delegation, incentive versus instructive, the possibility of...

The role of commitments in noncooperative games is well acknowledged and documented. One way to achieve commitments is by letting delegates represent the players of a game. In this paper, the authors study a delegation game in which the players can use agents strategically to play on their...

The authors study the equilibrium price paths of a finite-horizon dynamic duopoly model in which the market price does not have to adjust instantaneously in response to changes in the quantity supplied. A complete analysis of the feedback Nash equilibrium of a finite-horizon linear quadratic...

In this article, we consider a class of discrete choice models in which consumers care about a finite set of product characteristics. These models have been used extensively in the theoretical literature on product differentiation and the goal of this article is to translate them into a form...

Empirical work on choice models, especially on relatively new topics or data sets, often starts with descriptive, or what is colloquially referred to as “reduced form,” results. Our descriptive form formalizes this process. It is derived from the underlying behavioral model, has an...