In this paper we analyse the consequences of Knightian uncertainty for partnerships with symmetric linear production functions are analysed in a CEU framework. We propose an extension of Nash equilibrium in pure strategies for CEU-games with strategic uncertainty. We find that the presence of...

The paper constructs an asymmetric information model to investugate the efficiency and equity cases for government mandated benefits. A mandate can improve workers' ibsurance, and may also redistribute in favour of more "deserving" workers.

There are two main schools of thought which seek to explain currency crises; fundamentalist theories (Krugman, 1979) and speculative theories ( Obstfeld, 1986). However, neither of these approaches considers the timing of a speculative attack on the currency. I explain the timing of a crisis in...

If an inspector is work averse and his effort spent on investigating reports is not observable this creates a moral hazard problem whenever there is an imperfect monitoring technology. This problem arises because the organization can not distinguish between an inspection that doesn't find...

We carry out two experiments to test a model of herd behaviout based on the work of Banerjee (1992). He shows that herding occurs as a result of people observing the actions of others and using this information in their own decision rule.