This paper presents an equation of the dynamic path of prices in a monopolistically competitive market in which firms sell to both old and new customers. Both types are able to search for the lowest price, given search costs, where the expected number of searches is given by the inverse of the...

This paper considers the eff ects of a two-period interaction on the decision of a principal to delegate authority to a potentially biased but better informed agent. Compared to the (repeated) one-period case, the agent's first period actions may also signal his type which in turn impacts wages...

This paper considers the effects of a two-period interaction on the decision of a principal to delegate authority to a potentially biased but better informed agent. Compared to the (repeated) one-period case, the agent's first period actions may also signal his type which in turn impacts wages...

This paper considers the e effcts of a two-period interaction on the decision of a principal to delegate authority to a potentially biased but better informed agent. Compared to the (repeated) one-period case, the agent's first period actions may also signal his type which in turn impacts wages...

In this note we use a simple game model to analyze the optimal cleanup of an apartment that is shared by n∈N college students who are pressed for time. From an individual standpoint, these students dislike cleaning. However, they also prefer a clean apartment to a dirty one. Hence, for any...

In this note we use a simple game model to analyze the optimal cleanup of an apartment that is shared by n ∈ ℕ college students who are pressed for time. From an individual standpoint, these students dislike cleaning. However, they also prefer a clean apartment to a dirty one. Hence, for any...

The questions of whether there ever existed excessive risk-taking incentives from executive compensation in the financial industry, and whether top executives of financial services firms actually responded to such excessive incentives that eventually led to the crisis remain unanswered. The...

This paper studies the role of job search assistance programs in optimal welfare-to-work programs. The analysis is based on a framework, that allows for endogenous choice of benefit types and levels, wage taxes or subsidies, and activation measures such as monitoring and job search assistance...

This paper studies the role of job search assistance programs in optimal welfare-to-work programs. The analysis is based on a framework, that allows for endogenous choice of benefit types and levels, wage taxes or subsidies, and activation measures such as monitoring and job search assistance...

Using a principal-agent setting in which the agent has a rich action space, we provide a novel framework for studying accounting measurement and aggregation. We show that the optimal contracting process can be decomposed into three stages: constructing unbiased estimates of items that the...