In this paper we develop a simple model in which some employees are thieves and will steal from their employers if given the opportunity. Firms can counter this threat through practices such as locking employees inside their factories or requiring them to submit to searches. We show that the...

Workers value job security. If at least some workers value it enough, then it is efficient for at least some firms to adopt policies in which they commit (implicitly or explicitly) not to dismiss employees except for “just-cause,” as opposed to policies in which employers are free to dismiss...

Deltas, Salvo and Vasconcelos (2011) develop a model of geographically separated markets with differentiated goods in which collusion (or merger to monopoly), by restricting trade relative to duopolistic competition, is beneficial for society and can be beneficial for consumers. In this chapter,...