Our analysis treats advertisements and the goods advertised as complements in stable metautility functions, and generates new results for advertising by building on and extending the general analysis of complements. By assimilating the theory of advertising into the theory of complements, we...

This note tries to explain why many successful restaurants, plays, sporting events, and other activities do not raise prices even with persistent excess demand. The authors approach assumes that demand by a typical consumer is positively related to quantities demanded by other consumers. This...

This comment discusses the importance of politics in understanding cost-benefit analysis. Economists frequently rely on a social planner model, under which cost-benefit analysis has a straightforward role, but a better model is the interest group competition model. In this model, cost-benefit...

This paper develops a model of the transmission of earnings, assets, and consumption from parents to descendants. The model assumes utility-maximizing parents who are concerned about the welfare of their children. The degree of intergenerational mobility is determined by the interaction of this...