A typical model of investment under uncertainty, where firms pay an irreversible cost in order to produce, is studied. The analysis has a novel focus on the recipient of this payment, which is modeled as a firm or government that sells a resource (or a right) necessary for the production of the...

In markets where production has adverse externalities, policy makers may wish to increase welfare by imposing a cap on market entries. In this paper, we examine the implications that the cap has on the firms' investment equilibrium policy and on social welfare in the presence of market...

In markets where production has adverse externalities, policy makers may wish to increase welfare by imposing a cap on market entries. In this paper, we examine the implications that the cap has on the firms' investment equilibrium policy and on social welfare in the presence of market...

In competitive industries, foreseeable policy changes lead to inevitable runs which increase the volatility of investment. We show that this phenomenon, well-known in the case of production caps, also applies to taxes, and occurs whether policy changes apply to new entrants only or equally to...

This paper hypothesizes that the demise of the19th century's European class structure reflects a deliberate transformation of society orchestrated bv the Capitalists. Contrary to conventional wisdom, it argues that the demise of this class structure has been an outcome of a cooperative rather...