This paper extends the standard monopoly quality differentiation model by Mussa and Rosen (1978) to an environment where the production of a (qualitydifferentiated) product-line involves initial fixed investments in common assets such as production facilities or R&D. The fixed cost depends...

This paper analyses the monetary policy transmission mechanisms through the banking sector. Banks are assumed to compete a la Bertrand in a loan market characterized by adverse selection. Stiglitz and Weiss' (1981) set-up is extended to introduce leakages of reserves from the banking system,...

We examine the ability of expected utility function ofthe Friedman-Savage type to account for gambling when consumers also have opportunities for intertemporal substitutions. When the time horizon is infinite, we demonstrate that even in intra-period utility functions have the Friedman-savage...

We describe a model of participation in lottery games designed to address the optimisation of tax revenue in state-sponsored lotteries. The model treats participants dynamically and examines a long-run equilibrium. A novel high frequency approximation is used to turn the problem into a static,...

By assuming that an individual has preferences concerning different states of the world and these preferences can be described by an individual social welfare function, we explore the relative value of statistical life using survey data from Bangladesh. We apply a pair-wise choice experiment on...