This paper studies the behavior of boundedly rational agents in a two good economy where trading is costly with respect to time.

A unifying theme in the literature on organizations such as public bureaucraciesand private nonprofits is the importance of mission, as opposed to profit, as anorganizational goal. Such mission-oriented organizations are frequently staffed bymotivated agents who subscribe to the mission. This...

The technological developments in the areas of information and communicationtechnology have generated worldwide business opportunities for firms which carry out coordinationtasks as a service for other enterprises. To begin with, several implications of this development for the fundamental...

This paper analyzes a procurement setting with identical firms and stochastic innovations. In contrast to the previous literature, I show that a procurer who cannot charge entry fees may prefer a fixed-prize tournament to a first-price auction. The reason is that holding an auction may leave...

Municipal bonds trade in opaque, decentralized broker-dealer markets in which price information is costly to gather. Whether dealers in such a market operate competitively is an empirical issue, but a difficult one to study. Data in such markets is generally not centrally recorded. We analyze a...

We present a dynamic general equilibrium model with agency costs, where heterogeneous firms choose among two alternative instruments of external finance - corporate bonds and bank loans. We characterize the financing choice of firms and the endogenous financial structure of the economy. The...

Matchmaking is the process of mediating demand and supply based on profile information. Matchmaking plays a crucial role in agent-based electronic marketplaces: the problem to be solved is to find the most appropriate agents, products, or services for a task, negotiation, or market transaction....