We study a simple insurance economy with moral hazard, in which random contracts overcome the non-convexities generated by the incentive-compatibility constraints. The novelty is that we use linear programming and duality theory to study the relation between incentive compatibility and pricing....

In this paper we present a model of an organization where agents can choose between productive and rent-seeking activities. We consider two governance institutions, single ownership and corporate governance or parliament rule. Applications include models of internal organization of a firm, of a...

In many countries, recruiting and promotion procedures in the public sector would appear to leave less room for gender discrimination than in the private sector. Using data for Spain in 1977 and 1992, this paper explores the consequences of these practices for gender segregation in those...

A core allocation of a complete information economy can be characterized as one that would not be unanimously rejected in favor of another feasible alternative by any coalition. We use this test of coalitional voting in an incomplete information environment to formalize a notion of resilience....

We show that, independently of the topology chosen on the set of all infinity utility streams, there is no Social Welfare Function preserving the von Weizsäcker’s overtaking criterion. With our proof we extend the impossibility result of Basu and Mitra.

The paper introduces a notion of complementarity (substitutability) of two signals which requires that in all decision problems each signal becomes more (less) valuable when the other signal becomes available. We provide a general characterization which relates complementarity and...

For games in partition function form, we explore the implications of distinguishing between the concepts of intrinsic marginal contributions and externalities. If one requires efficiency for the grand coalition, we provide several results concerning extensions of the Shapley value. Using the...

In this paper we analyse the research in Economics in Spain during the 1990s considering the contributions of both Spanish and foreign economist who have worked in Spain during that period. To do so, we use different bibliometric indicators in order to elaborate rankings for both institutions...

This paper reports experimental evidence on a stylized labor market. The experiment is designed as a sequence of three treatments. In the last treatment, TR3, four principals, who face four teams of two agents, compete by offering the agents a contract from a fixed menu. In this menu, each...

We study a model of proportional representation, in which the policy space is multidimensional. We first show, via an example, that the assumption of quasi-concavity of the utility function is not sufficient to obtain the result that only the extreme parties get votes, contrary to the...