Few textbooks in mathematical economics cover optimal timing problems. Those which cover them do it scantly or in a rather clumsy way, making it hard for students to understand and apply the concept of optimal time in new contexts. Discussing the plentiful illustrations of optimal timing...

It is well known that a one-dimensional discrete-time model may yield endogenous fluctuations while this is impossible in a one-dimensional continuous-time model. Invernizzi and Medio (1991) recast this time-modeling issue into an aggregation issue. They have proposed a "random-lags approach" as...

Sannikov (2007) investigates properties of perfect public equilibria in continuous time repeated games. This note points out that the proof of the main theorem (Theorem 2) needs some corrections. I show that the main theorem holds as it is with suitable modifications of Lemmata 5 and 6.

General polygyny -- near universal marriage and polygyny -- is common in Africa. But why would men marry n wives for 1/n:th of the time instead of monogamously? Downsides include prolonged bachelorhood and a high degree of step-parenting. We point to the African slave trade which...

This paper studies the relation between patterns of long-term economic growth and indeterminacy of equilibrium in an endogenous growth model with human capital formation. By introducing sector-specific externalities and a non-separable utility function into the Lucas model, we show that multiple...

We find the sufficient conditions for the existence of multiple equilibria in Tullock-type contests, and show that asymmetric equilibria arise even under symmetric prize and cost structures. We then present existing contests where multiple equilibria exist under reasonably weak conditions.

We provide empirical support and a theoretical explanation for the vicious circle of political corruption and tax evasion in which countries often fall into. We address this issue in the context of a model with two distinct groups of agents: citizens and politicians. Citizens decide the fraction...

We study workplace peer effects in fertility decisions using a game theory model of strategic interactions among coworkers that allows for multiple equilibria. Using register-based data on fertile-aged women working in medium sized establishments in Denmark, we uncover negative average peer...

We use data from the US airline industry to estimate a model of entry deterrence. We model the interaction among airlines as a repeated static game, where we allow for a very general form of heterogeneity. We consider a menu of three alternative games that describe the strategic interaction...

The economy often moves in large jumps. For example, bank runs can quickly cause an economy to suddenly drop into a deep recession. In this paper, bank approval of loans to a genius entrepreneur may cause an economy to jump to a higher income level or growth rate. In a simple model, this implies...