Current and future well-being and economic prosperity of children depend in large part on the nuances of decisions made by parents with respect to familial resources, an important part of which regard the time spent in the company of children. We estimate differences in the time that immigrant...

This paper proposes a theory of endogenous transmission of social status through signalling in the labour market. A signalling game is analysed, in which education, acting as a signalling good, determines one's position in society. The economy's degree of inequality is shown to be a determinant...

I study a multi-player mechanism design problem where the players are able to collude. I characterize the extent that the principal can link the compensation level of one of these players to the production performance of the other. I use this characterization result to identify the optimal...

We study how competing matchmakers use prices to sort participants into search markets, where they form random pairwise matches, and how equilibrium outcomes compare with monopoly in terms of prices, search market structure and sorting efficiency. The role of prices to facilitate sorting is...

Technical supplement to the paper forthcoming in Rand Journal of Economics.

We study an adverse selection problem, where an agent is able to understate his productivity, but not allowed to overstate it. The solution to this problem is generally different than the solution to the standard problem, where no restriction is made on the statements of the agent. We identify a...

We study a mechanism design problem in which players can take part in a mechanism to coordinate their actions in a default game. By refusing to participate in the mechanism, a player can revert to playing the default game non-cooperatively. We show with an example that some allocation rules are...

Though individuals prefer to join groups with high quality peers, there are also advantages from being high up in the pecking order within a group. We show that sorting of agents in this environment results in an overlapping interval structure in the type space. Segregation and mixing coexist in...