It is shown that the evolution of modern developed societies results into reduction of the role of centralized governance as well as economic and political competition, whereas the role of collaboration mechanisms is growing. This process is supported by cultural changes: increasing trust,...

I discuss goals of institutional experimentation as well as obstacles for its realization. The special attention is given to regional experiments. Institutional experiment reduces transformation costs, in particular, by diminishing probability of formation of erroneous reforms trap. The analyses...

This paper models a dynamic scholar’s allocation of time between academia and professional activities outside academia, given the academic labor market and social interactions. The model shows how particularly in less developed countries business and political networks may have large negative...

When focusing on firm’s risk-aversion in industry equilibrium, the number of firms may be either larger or smaller when comparing market equilibrium with and without price uncertainty. In this paper, we introduce risk-averse firms under cost uncertainty in a model of spatial differentiation...

The problem of finding a Pareto point which would satisfy additional conditions in the form of equalities is stated. A theorem on existence of a solution is proved. Examples are given.

This paper modifies a standard model of law enforcement to allow for learning by doing. We incorporate the process of enforcement learning by assuming that the agency’s current marginal cost is a decreasing function of its past experience of detecting and convicting. The agency accumulates...

Using the principal-agent- supervisor paradigm, this paper examines the occurrence of collusion in a setting where the principal has no information about the supervisor and the agent does not necesarily know the supervisor’s preferences.We formally prove the occurrence of collusion is more...

We propose a dynamic efficiency wage model with learning by doing. By taking into account the change inthe stock of workers’ knowledge, firms set efficiency wages such that the effort–wage elasticity is not in general equal to one.

We describe the negotiated-price mechanism, introduced in the USSR in 1985, to increase flexibility of retail prices. We discuss a possibility to improve interactions between manufacturing and retailing through negotiated prices, and demonstrate a methodology to estimate them, using consumer...

Heterogeneous firms facing demand-induced price fluctuations imperfectly compete for heterogeneous workers. It is shown that unemployment may arise in equilibrium because of the combination of uncertainty on product price and mismatch between workers’ skills and firms’ job requirements.