It is widely believed that the English auction is solved after the dominated strategies are eliminated. This opinion is formally confirmed only for one "ascending clock" auction and can not be generalized for most other English auctions. In this paper I show that the formal argument which is...

For the last 40 years the market for medical interns has been cleared with the help of a central matching procedure, the NRMP. This mechanism is applied after the wages are determined. So it is natural to ask how such a rationing scheme affects the equilibrium wages in this market. I present a...

Tying contracts are well-known for their anti-competitive potential. This paper questions their negative image by showing that tying contracts can be necessary to implement price signals which overcome problems of asymmetric information in the introductory phase of a new durable product. The...

The core of a linear assignment problem contains in general a continuum of allocations. A model is presented where the core shrinks to a unique solution as the population grows.

The paper presents a manager controled firm which does not minimize long run costs even though there is no moral hazard problem involved and the mangager maximizes a profit depending salary. The inefficiency is caused by competition in the job market since the manager uses some of his freedom...