This paper formalizes the relation between comparative statics and the out-of-equilibrium explanation for how a system evolves after a change in parameters.

The empirical evidence presented in this paper casts serious doubts on the by now widely accepted "stylized factes" of the exchange rate based stabilization programs (ERBS) as they are stated in Kiguel and Liviatan (1992) and in vegh (1992).

We fully characterize the preferences relations that can be represented by a utility. Representation is equivalent to the condition that preferences do not have too many "jumps". A characterization of preferences that can be represented by a continuous utility follows trivially from our...

We study the performance of two-sided matching clearinghouses in the laboratory. Our experimental design mimics the Gale-Shapley (1962) mechanism, utilized to match hospitals and interns, schools and pupils, etc., with an array of preference profiles. Several insights come out of our analysis....

We define the empirical content of an economic theory as the least restrictive observationally equivalent theory. We show that the empirical content of a theory is captured by a certain kind of axiomatization, with axioms that are universal negations of conjunctions of atomic formulae.

We present a theoretical explanation of inefficient early matching in matching markets. Our explanation is based on strategic complementarities and strategic unraveling. We identify a negative externality imposed on the rest of the market by agents who make early offers. As a consequence, an...

The empirical evidence presented in this paper casts serious doubts on the by now widely accepted "stylized facts" of the exchange rate based stabilization programs (ERBS) as they are stated in Kiguel and Liviatan (1992) and in Végh (1992). Even though the ERBS programs were associated with...

I characterize games for which there is an order on strategies such that the game has strategic complementarities. I prove that, with some qualications, games with a unique equilibrium have complementarities if and only if Cournot best-response dynamics has no cycles; and that all games with...

I count the number of combinatorial choice rules that satisfy certain properties: Kelso-Crawford substitutability, and independence of irrelevant alternatives. The results are important for two-sided matching theory, where agents are modeled by combinatorial choice rules with these properties....