The Great Recession has called into question many tenets of Neo-classical Microeconomics. Neo-classical theory allows each agent only one fixed type, homo economicus, while not denying other possible types as in adverse selection. We propose that economic agents not only choose their market...

We propose an equilibrium concept, the Robust Nash equilibrium (RNE), that combines the best-reply rationality and the "first mover invariance" condition. The single-stage 2x2 symmetric information game G is transformed into sequential two-stage games with two sub-trees: STA has the row player...

It is generally taken for granted that China’s monetary and exchange rate policy have repercussions on her Asian neighbors and affect the choice set open to them in terms of setting optimal economic policy. At the very least, China’s neighbors would like to have a clearer idea of China’s...

On the 20th anniversary of “Ninoy” Aquino’s death, we revisit the alignment of forces and beliefs at EDSA ’86 and argue how the powerless state became the historic compromise struck among mutually distrusting and loathing partners. The 1987 Constitution, bearing the brunt of these...

We consider decision regimes where two independent juries choose opposite majority rule winners in the same dichotomous choice problem. We highlight the role of the extent of victory on top of the numbers competence effects in evaluating the outcomes. We also analyze the judgmental competence of...

We explore how the structure of incentives contracts adjusts to the creation of quasi-rents by the delivery of certain types of contract obligations under weak third party enforcement (TPE). The situation invites quasi-rent appropriation by some contractor. We focus on possible ex-post...

We apply the Condorcet Jury Theorems and some extensions to the issue of the legality of the removal of Estrada from the Presidency and the accession of President Arroyo. Adopting as primal the legal principle "Salus populi, suprema lex," we argue that on the basis of (a) relevant subplots in...

We model the lending behavior of rural traders in a linked credit-output transaction. The likelihood of credit involvement with a trader rises with farmed area, with the combination of enforceability of repayment and demand elasticity and with the likelihood of procurement of marketable surplus...

We show that the Generalized Sharing Scheme which is exhaustive, allows a team of identical members voluntarily supplying observable effort to attain Pareto efficient production under increasing returns provided team size is allowed to vary.

Block-recursiveness of the household production model is a convenient property to have in the analysis of household production relations. We show here that, with perfectly competitive rural markets, block-recursiveness holds when production risk is additive but not when it is multiplicative....