This dissertation consists of three essays. In the first one (Chapter three), âGains and Losses from Household Formation,â I introduce a general equilibrium model, wherein a household may consist of more than one member, each with their own preferences and endowments. In these models at first,...

This dissertation consists of three essays on theoretical analysis of economic agents' decision making and incentives. Chapter 1 gives an outline of the subjects to be examined in the subsequent chapters and shows their conclusions in brief.Chapter 2 explores the decision problem of a...

The first part of this dissertation investigates the possibility of an output cut by a firm as a result of an increase in demand in industries with constrained capacities. We are specially interested in the crude oil industry, although thepaper has implications beyond that market. Two simple...