This paper develops and analyzes a macroeconomic model in which aggregate growth and fluctuations arise from the discovery and diffusion of new technologies; there are no exogenous aggregate shocks. The temporal behavior of aggregates is driven by individuals' efforts to innovate and/or make use...

We analyze a multiple-activity principal-agent model in which the activities are naturally substitutable for the agent and complementary for the principal. A basic result is that the optimal compensation mechanism must cause the agent to view the activities as complements. This complementarity...

We analyze a multiple-activity, principal-agent model in which the activities are naturally substitutable for the agent and complementary for the principal. A basic result is that the optimal compensation must cause the agent to view the activities as complements. This complementarity is...

We define value creation, competition, and value appropriation, and show that (i) there is a minimal level of value creation that is required if competition is to allow a firm to appropriate value; (ii) there is a higher level of value creation guaranteeing competition will result in value...

We explore the determinants of the payoffs an individual player may obtain in the equilibria of superadditive n-player coalitional games with transferable payoff. We provide conditions necessary and sufficient for the lower bound on a player's equilibrium payoff to coincide with his reservation...

The evolution of technology causes human capital to become obsolete. We study this phenomenon in an overlapping generations setting, assuming that technology evolves stochastically and that older workers find updating uneconomic. Experience and learning by doing may offer the old some income...

Coalitional games have become one of the basic building blocks for the foundations of Strategy. In this paper we show how this framework can be applied to make strategic decisions. We review the basic theory, detail how its ingredients can be quantified, and show how the calculations suggested...

This study uses a simple model of information gathering to generate policy recommendations concerning education in Ontario, especially at the post-secondary level. The schools are viewed as helping students discover jobs matched to their abilities, and policy prescriptions are offered from that...

We analyze a multiple-activity, principal-agent model in which the activities are naturally substitutable for the agent and complementary for the principal. A basic result is that the optimal compensation must cause the agent to view the activities as complements. This complementarity is...

The usual explanation for why the producers of a given product use different technologies involves "vintage-capital": A firm understands the frontier technology, but can still prefer an older, less efficient technology in which it has made specific physical and human capital investments. This...