This paper proposes a model of altruism with endogenous labor supply. A full characterization of the family's choices of consumption and leisure is provided. Initially, work effort is assumed to be publicly observed; this assumption is later relaxed, allowing for privately observed actions. It is...

In this paper, the authors use a model of tax competition to study the role of information sharing in common agency problems.

This paper formalises a three-tier administrative hierarchy. A benevolent federal government must decide how to fund an indivisible local public work, planned to be undertaken by a single firm. But the federal government observes neither the cost nor the local benefit of the project. To obtain...

The recruitment of new employees is analysed in a theoritical model. It is shown that it can be optimal to implement requirements of formal qualifications for jobs, although it would be possible for the manager to find applicants who have a higher expected ability but no formal qualifications.

This paper contributes to the economic analysis of merger control by taking into account the efficiency gains for the design of structural merger remedies when the competition authorities do not observe the magnitude of efficiency gains. We show that whenever divestitures are necessary, the...

The purpose of this paper is to provide an explanation for relative pricing of futures contracts with respect to underlying stocks using a model incorporating short sales constraints and informational lags between the two markets. In this model stocks and futures are perfect substitutes, except...

We characterize, for any model of repeated interaction with incomplete information and signals, the information that players can learn through finite procedures robust to unilateral deviations.

Individuals exchange contracts for the delivery of commodities in competitive markets and, simultaneously, act strategically; actions affect utilities across individuals directly or through the payoffs of contracts. This encompasses economies with asymmetric information, Nash-Walras equilibria...

This paper analyses the consequences of trust for the general equilibrium in an exchange economy. Trust is viewed as a gift of information which modifies the caracteristics of goods a la Stigler-Becker. The increase in utility due to the increase in information is modified by its consequences on...

This article suggests that the global inefficiency which generally affects a production process is endogenous and depends on the incentives generated by the process environment. We propose to treat the usual correlation between the inefficiency and the regressors of the production frontier...