The head of an organization is viewed as dealing with an optimization problem under a variety of constraints. The bureaucracy, by contrast, is viewed as dealing with the constraints alone: it has to make a multitude of low-level decisions, in such a way that no constraint is violated. However,...

We study efficiency properties of competitive economies in which banks provide liquidity insurance and interact on secondary asset markets. While all banks are subject to extrinsic risk, a bank's portfolio choice determines whether it is prone to a bank run in one of the extrinsic states. Asset...

We consider a connection networks model. Every agent has a demand in the form of pairs of locations she wants connected, and a willingness to pay for connectivity. A planner aims at implementing a welfare maximizing network and allocating the resulting cost, but information is asymmetric: agents...

We consider a generalization of the Minimum Cost Spanning Tree (MCST) model dubbed the Minimum Cost Connection Network (MCCN) model, where network users have connection demands in the form of a pair of target nodes they want connected directly, or indirectly. Given a network which satisfies all...

In the present paper a model of competition between sports clubs in a sports league is presented. Clubs are endowed with initial players but at a cost clubs are able to sell their initial players and buy new players. The results are that: if the quality of players is one-dimensional, then...