We study aggregative games in which players’ strategy sets areconvex intervals of the real line and (not necessarily differentiable)payoffs depend only on a player’s own strategy and the sum of allplayers’ strategies. We give sufficient conditions on each player’s payofffunction to...

If households and firms face different interest rates, there may be mutual gains in forming seniority wage contracts, which facilitate implicit saving by younger workers, who might otherwise save either little or nothing at all at low interest rates. A three-period OLG model is presented with...

We show the welfare effects of entry in presence of technology licensingunder Cournot competition. If the entrant is technologically inferior to that of theincumbent then, though licensing reduces (or completely eliminates) excessive entryfor relatively low entry costs, it creates excessive...

We consider the effects of an imperfectly competitive banking sector on the capital stock in a version of the two-period Diamond OLG model, focusing on how profits are returned. There are two broad alternatives: profits may be taxed and returned to households exogenously as fiscal transfers or...

We consider the effects of product market cooperation on R&Dinvestment, profits, consumer surplus and welfare. We show that though R&Dinvestment, consumer surplus and social welfare may be higher or lower underproduct market cooperation than product market competition, industry profit isalways...

We show that a monopolist input supplier licenses its technology to create a second source of input supply if second sourcing increases competition in the final goods market. We also show that welfare increases under second sourcing...

In an investment contest for environmental policy, polluters and victims ofpollution invest in an increase of their marginal benefits of pollution and environmentalquality, respectively. These investments influence time-consistent environmental policy...

We consider a simple random walk process, a special case ofthe Martingale model, which exhibits a deterministic break in its drift term,for instance, from positive to negative. This particular example can be aplausible model for a time series on exchange rates which displays a persistentcurrency...

The abolition or reform of unfunded pensions will generally make members of a transitional generation worse-off, because of the "double burden" of funding their own retirement along with that of paying off the unfunded pension liability. Reform will also lower the time-path of interest rates,...

This paper considers the effects of entry in the final goods market when the input market is imperfectly competitive. We show that entry of a new firm may increase profit of the incumbent if the technology of the entrant is sufficiently inferior to that of the incumbent...