This study uses an agent-based computational experiments to examine the effects of a non-employment payment on network formation and work-site behaviors among workers and employers participating in a sequential employment game with incomplete contracts. Findings are compared with those obtained...

It is now widely believed that government intervention is essential to ensure Pareto efficiency in the standard overlapping generations economy with nonaltruistic agents. This paper argues that the normal profit-seeking activities of {\it private intermediaries\/}---missing from the standard...

This paper reports the results of human subject and computational experiments designed to examine how the level of the "inactivity payments" to workers and to employers affects the evolution of cooperation among workers and employers. The related impacts to unemployment and job vacancy rates are...

The objective of this note is to show that the positively valued excess supplies which Aiyagari (JME, 1992) connects with Pareto inefficiency for overlapping generations economies represent an economic opportunity that can potentially be exploited by government or by a private financial...

Economies are complicated systems encompassing micro behaviors, interaction patterns, and global regularities. Whether partial or general in scope, studies of economic systems must consider how to handle difficult real-world aspects such as asymmetric information, imperfect competition,...

This paper establishes that the pro�t-seeking activities of private intermediaries can ensure Pareto e�ciency in the standard pure-exchange monetary overlapping generations economy without the need for government monetary or �scal policy intervention. Moreover, these...