We develop a competitive model of trade between countries with similar aggregate factor endowments. The trade pattern reflects differences in the distribution of talent across the labor forces of the two countries.

We develop a model of common agency with complete information and general preferences with non-transferable utility, and prove that the principales'Nash equilibrium in truthful strategies implements an efficient action.

In this paper we study the problem of ecient production and allocation of indi- visible objects among a set of consumers. We assume that the agents' preferences depend on the bundle of objects and the quantity of money they consume. Further- more, we assume that preferences are quasilinear in...

In an economy with imperfect labor contracts, differences in the distribution of human capital are an independent source of comparative advantage. I study a world economy with two sectors, one where output is produced by teams and another where individuals can work alone. When worker’...