Plenty of people’s consumption is referred to necessary products used every day, and the cultural products are classified as sumptuary groceries used aside the people’s basic necessities. But those cultural consumptions are the ones that cause great difference among people. Those frequent...

This paper defines a general equilibrium model with exchange and club formation. Agents trade multiple private goods widely in the market, can belong to several clubs, and care about the characteristics of the other members of their clubs. The space of agents is a continuum, but clubs are...

This is a commentary on Vernon Smith's contributions to experimental economics

The distributive politics literature following Weingast (1979) predicts majoritarian redistribution within countries governed by strong party systems. This prediction is tested using evidence from Canadian job creation grant programs active during the mid-1990s. Results provide strong evidence...

We study the effects of unequal representation in the interest-group system on the degree of information transmission between a lobbyist and a policymaker. Employing a dynamic cheap-talk model in which the lobbyist cares instrumentally about his reputation for truthtelling, we show that the...

This study is part of a continuing program of research into the performance of economic infrastructure industries, which was commenced by the Bureau of Industry Economics. It is the third Waterfront Benchmarking report in the cycle. The study builds on the two previous waterfront studies by...

Recent surveys in the United States and the Muslim world show widespread misinformation about the events of September 11, 2001. Using data from 9 predominantly Muslim countries, we study how such beliefs depend on exposure to news media and levels of education. Standard economic theory would...

In a pure-exchange economy involving one perishable consumption good and risk-averse consumers, the elasticity of a consumer’s Pareto-efficient consumption with respect to aggregate output equals the reciprocal of the ratio of the consumer’s coefficient of relative risk aversion to average...

A supplement to Economic Analysis (3rd Edition).

A dual representation of a technology, e.g., a cost function, may not contain all of the technological information, but it will contain all of the information about input vectors that would be chosen by a cost-minimizing firm. At least this much is clear for deterministic technologies. The main...