Local interactions refer to social and economic phenomena where individuals' choices are influenced by the choices of others who are `close' to them socially or geographically. This represents a fairly accurate picture of human experience. Furthermore, since local interactions imply particular...

Local interactions refer to social and economic phenomena where individuals' choices are influenced by the choices of others who are `close' to them socially or geographically. This represents a fairly accurate picture of human experience. Furthermore, since local interactions imply particular...

Local interactions refer to social and economic phenomena where individuals' choices are influenced by the choices of others who are ‘close’ to them socially or geographically. This represents a fairly accurate picture of human experience. Furthermore, since local interactions imply...

The theory of value has serious limitations as a general theory of economics. Consequently, many economists have sought to modify it by incorporating those aspects of exchange that it assumes away--the difficulties of exchange, the methods of overcoming them, and the implications of expanding...

This paper introduces and develops the concept of “conditional agreement point”, defined as the dominating issue (hard optimality) within a certain restricted subset of the set of feasible issues (partial optimality). Such a concept associates individualistic independence (via the operation...

We integrate individual power in groups into general equilibrium models with endogenous group formation. We distinguish between formal power (the say in group decisions) and real power (utility gain from being in groups). Their values will be determined as part of the equilibrium. We find that...

Extrinsic uncertainty is effective at a competitive equilibrium. This is generic if spot markets are inoperative: the only objects of exchange are assets for the contingent delivery of commodities; and the asset market is incomplete. The structure of payoffs of assets may allow for non-trivial...

At a Nash-Walras equilibrium, individuals exchange commodities competitively, and, simultaneously, they interact strategically. Under standard assumptions, Nash-Walras equilibria exist, equilibrium profiles of actions are, typically, determinate byt Pareto suboptimal, though not constrained...

Extrinsic uncertainty is effective at a competitive equilibrium. This is generically the case if commodities are exchanged indirectly, through the exchange of assets, spot markets are inoperative, while the asset market is incomplete. <p> The structure of payoffs of assets may allow for non -...</p>

In this paper we formulate a three-sector general equilibrium model where one sector produces a service or good used as an intermediate input in two other sectors. Intermediate input here resembles bureaucratic (in)efficiency/control, red-tapism etc. in light of these concerns we introduce...