August 2001 <p> In this paper, we explore the consequences of using equilibrium models of auctions in making policy recommendations, such as the design of real world markets, or as a basis for structural estimation when bidders make small errors in optimization. We consider two types of error prone...</p>

June 1997 <p> Over the last forty years, the majority of states have adopted consumer education policies, and a sizable minority have specifically mandated that high school students receive instruction on topics related to household financial decision-making (budgeting, credit management, saving...</p>

February 6, 1999 <p> We model an organization as a hierarchy of managers erected on top of a technology (here consisting of a collection of plants). In our framework, the role of a manager is to take steps to reduce the adverse consequences of shocks that affect the plants beneath him. We argue...</p>

Revised April 2002 <p> Economic theory suggests that if firms can successfully collude, they will be able to increase their own profits at the consumers’ expense. Government antitrust policy aims to protect the public from such behavior. Enforcing such policy depends on a prosecutor’s ability...</p>

January 2003 <p> In this paper, a notion of risk measure is defined for dynamic models. Three axioms, coherence, relevance and dynamic consistence, are postulated. It is shown that every dynamic risk measure that satisfies the axioms can be represented as the maximal expected present value of...</p>

August 2000 <p> This is chapter 1 of a book manuscript entitled Towards a Comparative Institutional Analysis forthcoming from MIT Press in spring 2001. This book provides a game-theoretic, conceptual and analytical framework for understanding sources of the diversity of institutional arrangements...</p>

January 22, 2000 (Revised) <p> Endogenous Uncertainty is that component of economic risk and market volatility which is propagated within the economy by the beliefs and actions of agents. The theory of Rational Belief (see Kurz [1994]) permits rational agents to hold diverse beliefs and...</p>

July 2002 <p> This paper presents a new approach to the old problem of linear dependency of age, cohort and time effects. It is shown that second differences of the effects can be estimated without any normalization restrictions, providing information on the shape of the age, cohort and time effect...</p>