This Paper studies optimal nominal demand policy in a flexible price economy with monopolistic competition and inattentive firms (Shannon). Inattentiveness gives rise to idiosyncratic information errors and imperfect common knowledge about the shocks hitting the economy. Strategic...

In a model of career concerns for experts, when is a principal hurt from observing more information about their agent? This Paper introduces a distinction between information on the consequence of the agent's action and information directly on the agent's action. When the latter kind of...

This paper analyzes the evolution of conventions in a society with local interaction and mobile players. Three innovative aspects are introduced: Imperfect observability of play outside a player's home location, friction in the strategy adjustment process, and restriced mobility. It is shown...

We analyze the impact of vertical integration when a monopolistic producer can make a capital commitment before deciding on output.

While the theoretical literature on Foreign Direct Investment (FDI) focuses largely on movements in capital and firm specific technology, recent empirical evidence emphasizes primarily the local human capital necessary to absorb FDI technology. We examine how human capital affects FDI and add a...

L'auteur etudie un probleme de revelation des priferences pour la qualite d'un service public avec exclusion et de controle de cette qualite dans le cadre d'une relation principal-agent. Le principal ne connait pas les preferences des usagers en matiere de qualite. Par ailleurs, il ne peut...

Two alternative funding modes for a commercial bank are compared, deposits and securitization. Our model includes the two-sided asymmetric information setup of Diamond and Dybvig (1983) and Jacklin and Bhattacharya (1988) and a dynamic aspect with the introduction of a valuable new investment...

The multicriterion analysis particularly, when one is in presence of multicriterion aggregation procedures based on outranking relations has not been well studied in the literature. The objective of this paper is to try to extend Bayesian approach to a multicriterion analysis in context on...

In this paper, a multicriterion ranking procedure based on distance between partial preorders is proposed. This method consists of two phases. In the first phase, the decision maker is asked to rank alternatives with a preorder (complete or partial) for each criterion and provide complete or...