This paper analyzes an evolutionary model where agents are locally matched to playa coordination game and can adjust both their strategy and location. Their decisions are subject to friction, so that an agent who migrates to a different location may be unable to adjust her strategy optimally to...

This paper proposes an aspiration-based model for (anonymous) cooperation where a large population of agents are re-matched every period to playa Prisoner's Dilemma. At each point in time, agents hold a certain common aspiration level which is updated on the basis of population-average...

In this paper we study the theoretical plausibility of the conjecture that inflation arises because imperfectly competitive markets (ICM in the sequel) translate cost pushes in large price increases. We define two different measures of inflation transmission. We compare these measures in several...

The paper studies managerial incentives in a model where managers choose product market strategies and make takeover decisions. The equilibrium contract includes an incentive to increase the firm's sales, under either quantity or price competition. This result contrasts with previous findings in...

A unified approach to the problems of bargaining with a reference point and of bargaining with claims is addressed. Then, two solutions are reexamined from this perspective: the lexicographic egalitarian and the lexicographic claim-egalitarian. New characterization results are also provided.

This paper studies a strategic model of growth in which firms' accumulation and technological decisions are subject to both friction and external effects. This gives rise to a wide multiplicity of equilibrium behavior, which is consistent with quite different performances of the economy (e.g.,...

In this paper we study the problem of fair allocation in economies with indivisible goods, dropping the usual restriction that one agent receives at most one indivisible good. We show that most of the results obtained in the literature do not hold when the above mentioned restriction is dropped.

This paper considers Nash equilibria of a game played by two populations. Stability of the mixed equilibria is diacU8aed for a wide class of differential systems describing the evolutionary dynamics of behavior. The main property of the Systems under consideration is that every Nash equilibrium...

We study an income tax enforcement problem using a principal agent model where the government sets the tax and inspection functions. These functions are announced to the agents and there is no commitment problem. The penalty function for dishonest taxpayers is given exogenously and must satisfy...

This paper deals with the existence and properties of the demand correspondence when agents' preferences are pseudotransitive. It is shown that a consumption plan belongs to the demand mapping if and only if it is a maximizer of a real-valued weak utility function. Further properties, as...