In a model of horizontal product differentiation, we show that local monopolied may exist under free entry when capital is perfectly mobile. In contrast both with the situation of restricted entry and with the zero-profit approach to free entry outcomens of Salop 91979), the unit profit rate of...

This paper provides a methodology to study coalition formation problems with externalities and heterogeneous players, whensome subset of the players can act as "coalition developers" over time. The framework provided here allows to explicitly predict the timing of admission to coalitions, the...

In this paper we consider a labor constrained scheduling problem (LCSP) which is a simplification of a practical problem arising in industry. Jobs are subject to precedence constraints and have specified processing times. Moreover, for each job the labor requirements varies as the job is...

In a model where agents have unequal production skills and different preferences, we build social welfare functions which rely only on ordinal non-comparable information on individual preferences. Social welfare functions are required to satisfy properties of compensation for inequalities in...

Tax and expenditure policies are studied in a federation with mperfectly mobile households. States implement a linear progressive tax and supply a public good. A vertical fiscal externality, reflecting the effect of the state policies on federal revenues, provides an incentive to state taxes to...

In a dynamic general equilibrium setup, this paper highlights the role of vintages and creative destruction in business fluctuations. By stressing the forward-looking characteristic of the optimal scrapping rule, we use a standard rational expectations argument to show the constancy of the...