We employ a stochastic dynamic programming approach to study decision making by an individual wishing to have an arranged marriage. First, we show that this individual never opts out of a voluntarily agreed upon marriage. Second, we demonstrate that our marrying individual uses a reservation...

We employ a stochastic dynamic programming approach to study decision making by an individual wishing to have an arranged marriage. First, we show that this individual never opts out of a voluntarily agreed upon marriage. Second, we demonstrate that our marrying individual uses a reservation...

We analyze a market for microfinance in a region of a developing nation in which all projects are either of high or low quality. There is adverse selection because only borrowers know whether their project is of high or low quality but the microfinance institutions (MFIs) do not. The MFIs are...

In this note we analyze a game of marital infidelity. The husband can either be faithful to or cheat on his wife. The wife can either monitor or not monitor her husband. We first determine the best response correspondences of the two players. Second, we explain why there is no pure-strategy Nash...

We first construct a theoretical model of tax evasion in a stylized developing country in which all taxpayers have either high or low income. The key problem is that the high income taxpayers may under report their income. An individual income tax return can only be verified with an audit that...

We analyze the activities of an entrepreneur who must, at each date, decide whether to search for a new production technique or to produce output with an extant technique. Our analysis leads to four results. First, we show that if our entrepreneur rejects a particular production technique at a...

Recently, Batabyal (2005) has analyzed a game model of dowry determination in which a mediator plays a key role. Batabyal's analysis shows that the equilibrium dowry offers from the bride and the groom optimally trade off the desire to make an assertive offer with the likelihood that this offer...

In this note we analyze a game model of marital infidelity. The husband can either be faithful to or cheat on his wife. The wife can either monitor or not monitor her husband. We first determine the best response correspondences of the two players. Second, we explain why there is no...

We theoretically study the rescue of destitute migrants seeking to reach Europe on boats across the Mediterranean Sea. To this end, we first construct a discrete-time Markov chain (DTMC) model of a stylized rescue process. Second, we specify the one-step transition probabilities of the DTMC....

When it comes to inspections in invasive species management, the literature has shown that there is frequently a tension between economic cost reduction and inspection stringency. As such, we analyze the properties of two probabilistic inspection regimes that are designed to screen arriving...