We develop an alternative novel method of introducing real wage rigidity into an otherwise standard search and matching model. Wages are constantly renegotiated through Nash wage bargaining, however negotiations are based on imperfect information regarding the productivity level and consequently...

The class of neighbour games is the intersection of the class of assignment games (cf. Shapley and Shubik (1972)) and the class of component additive games (cf. Curiel et al. (1994)). For assignment games and component additive games there exist polynomially bounded algorithms of order p4 for...

We consider a pairwise kidney exchange model. Roth et al. (2005) define priority matchings of the model and introduce a mechanism to derive them. In this paper, we re-examine the priority matching. First, we consider a general priority ordering where multiple patients may hold equal priority. We...

We analyze a situation where a Principal does not necessarily have all the bargaining power while negotiating a contract with an Agent by studying a dynamic multi-objective moral hazard model with hidden action. We .nd that the structure of the optimal contracts change along the Pareto Frontier,...

The present paper investigates the functioning of an Emission Trading System (ETS) and its impact on the diffusion of environmental-friendly technological innovation in the presence of firms’ strategic behaviours and sanctions to non-compliant firms. For this purpose, we study an evolutionary...

The stable roommates problem with payments has as input a graph G(E,V) with an edge weighting w:E_ùR+ and the problem is to find a stable solution. A solution is a matching M with a vector p.RV that satisfies pu+pv=w(uv) for all uv.M and pu=0 for all u unmatched in M. A solution is stable if it...