We consider a two-person Cournot game of voluntary contributions to a public good with identicalindividual preferences, and examine equilibrium aggregate welfare under a separable, symmetric andconcave social welfare function. Assuming the public good is pure, Itaya, de Meza and Myles...

We model a general choice environment via probabilistic choice correspondences, with (possibly)incomplete domain and infinite universal set of alternatives. We offer a consistency restrictionregarding choice when the feasible set contracts. This condition, ‘contraction consistency’,...

We unify and expand the theory of consumer’s behavior, based on Samuelson’s Weak Axiomof Revealed Preference, to permit simultaneously both random choice and non-singletonchoice sets. We provide a consistency postulate for demand behavior when such behavior isrepresented in terms of a...

We explore the relation between two 'rationality conditions' for stochastic choicebehaviour: regularity and the weak axiom of stochastic revealed preference (WASRP). We show thatWASRP implies regularity, but the converse is not true. We identify a restriction on the domain ofthe stochastic...

This paper analyzes the problem of deriving predictions, regarding supply behavior of acompetitive firm, from prior consistency postulates about input-output choices made by such afirm. It extends the literature by introducing a consistency postulate for firm choice, which isweaker than...

This paper examines the implications of income redistribution from men to women for the welfareof married women and children. We develop a Cournot model of a two-person household whereagents provide market labor and allocate their spending between a private consumption good andgoods for children...

We generalize the stochastic revealed preference approach to consumers’ behavior introduced byBandyopadhyay, Dasgupta and Pattanaik (1999). We identify a restriction on stochastic demandbehavior that we term “Stochastic Substitutability” (SS)...

This note develops a method of recovering individual preferences, and of obtaining money-metricindividual welfare comparisons, from demand functions generated by Cournot-Nash equilibria ingames with public goods.

Marginal propensity to consume food out of food stamps in the US is higher than that out ofcash income. We explain this in terms of differential impact of cash income and in-kindtransfers on intra-household division of cash. We develop a Cournot model of a multi-personhousehold where food...

We examine the status of the maximization hypothesis in the positive economic theory ofrational choice. We argue that, contrary to a common belief, the maximization hypothesisdoes not play any role in large areas of positive rational choice theory. In contexts where itdoes, it is not logically...