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Persistent link: https://www.econbiz.de/10005028226
This article examines the validity of a gains from trade proposition in a world in which the direction of technological change is determined endogenously. We first give an extreme example in which a part of the world that would smoothly develop under autarchy forever remains underdeveloped under...
Persistent link: https://www.econbiz.de/10005028235
This paper deals with a privatized firm facing potential market entry. The firm has inherited excess capacity from its public past. The players have asymmetric costs. Only the entrant must install new capacity, which incurs positive capacity installation costs. The paper considers the subgame...
Persistent link: https://www.econbiz.de/10005028257
The relationship between risk and asset price fluctuations is studied in a stochastic overlapping generations asset pricing model with i.i.d. production shocks. The non-separability of preferences is an important factor in explaining the time paths of asset prices and returns. We show that the...
Persistent link: https://www.econbiz.de/10005028266
In this paper we characterize the set of Pareto optimal asset equilibria in a stochastic OLG-framework when real monetary shocks impinge on the economy. We show that it is the strength rather than the mere presence of monetary disturbances that accounts for, if the market mechanism fails to...
Persistent link: https://www.econbiz.de/10005028294
The comment refers to a paper by Grout published in the ECONOMIC JOURNAL (1988). Grout's paper is concerned with the impact of employee shares on the net income of the employees. Analysing a specific game he concludes that "workers in aggregate do not gain from share ownership". This conclusion...
Persistent link: https://www.econbiz.de/10005028326
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We examine the evolutionary foundations of common equilibrium refinement ideas for extensive form games, such as backward and forward induction, by examining the limiting outcome of an evolutionary process driven by stochastic learning and (rare) mutations. We show that the limiting outcome in a...
Persistent link: https://www.econbiz.de/10005028471
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