Suppose that one has a data set consisting of prices and individual endowments for some economy. Brown and Matzkin (Econometrica 64:1249-1262, 1996) have shown that there are conditions that the data have to satisfy, if the observed prices are determined by the competitive equilibrium process,...

The BP Deepwater Horizon oil spill of 2010 has focused considerable attention on the potential liability and the operating conduct of big oil companies. This paper shows that, limiting the ability of a company to insure and diversify its risks, creates incentives to internalize the welfare...

Following the economic recession of 2009-11, the U.S. Congress approved legislation weakening the information disclosure requirements for small companies seeking financing in public and private markets. This policy has been criticized by analysts who warn against a reduction in investors'...

Two additional aspects are considered beyond the standard general equilibrium setting with production under uncertainty. Firstly, sequential production forces firms to forecast future demand, produce in advance, and store inventory. Secondly, firms face a location decision, locating near...

We provide a novel mechanism that delivers efficient provision of public goods in an economy that may display warm-glow preferences. No information about the fundamentals of the economy is required on the mechanism designer's side, so the mechanism is informationally decentralized. The mechanism...

We assume that financial traders remember certain days—for example, those when the trader was actively trading—and that this memory does not fade over time. Unlike standard Bayesians, whose beliefs converge over time in the absence of private information, disagreement can persist in our...