We study the effect of communication in two-person games of incomplete information. We show that any rational mediated communication mechanism satisfying a Nash domination condition can be implemented as the perfect Bayesian equilibrium of a communication extension of the original game and ends...

This paper has two main purposes. Firstly, we develop various ways of defining efficiency in the case of multiple output production. We specifically consider the case where some of the outputs are undesirable, such as pollutants. We investigate how these efficiency definitions relate to one...

We examine the pricing of initial public offering (IPO), seasoned equity offering (SEO) and post-chapter 11 firms using a stochastic frontier methodology. The stochastic frontier framework allows us to model "inefficiency" or the difference between a firm's maximum predicted and its actual...

This paper examine a class of two-sided matching problems with non-transferable utility. Agents are horizontally differentiated, and each would prefer to be matched with a similar partner; in short, “like attracts like”. Although such preferences imply a unique stable matching, the degree of...

Research finds that firms' investment and dividend policies are distorted by irreversibility and finance constraints. Whereas the existing literature examines these features separately, this paper considers their interaction. The main theoretical result concerns the separation of the investment...

In many markets it is possible to find rival sellers charging different prices for the same good. Earlier research has attempted to explain this phenomenon by demonstrating the existence of dispersed price equilibria when consumers must make use of costly search to discover prices. We ask...

We represent random variables $Z$ that take values in $\Re^n-\{0\}$ as $Z=RY$, where $R$ is a positive random variable and $Y$ takes values in an $(n-1)$-dimensional space $\cal Y$. By fixing the distribution of either $R$ or $Y$, while imposing independence between them, different classes of...

This paper uses data from 11 countries for 19 years to investigate the forces driving output change in 6 manufacturing sectors. A stochastic production frontier model is adopted which allows for the decomposition of output changes into three types of change: technical, efficiency and input. This...

The paper examines the main issues involved in translating domestic bankruptcy procedures to the sovereign context. It considers some of the principles by which domestic bankruptcy procedures operate, and the extent to which they apply to international lending. Two recent proposals are...