This paper studies the formation of international climate coalitions by heterogeneous countries. Countries rationally predict the consequences of their membership decisions in climate negotiations. We offer an approach to characterise the equilibrium number of coalitions and their number of...

Several recent studies find that interventions in schools can have important lasting consequences for students, and that schools differ in their contribution to students’ learning. However, there is less research investigating how these differences between schools influence longer-term...

This paper studies an exchange economy with a finite number of agents in which each agent is initially endowed with a finite number of (personalized) indivisible commodities. We observe that the core equivalence theorem may not hold for this economy when the coalitional form game is generated in...

This paper presents a general equilibrium model of interenterprise arrears, characterized by n-stage production technology with random productivity shocks. The model shows that large interenterprise arrears in transition economies may reflect substantial business risks in those countries and...

In [9], a model of a private ownership economy is presented in which production and consumption bundles are treated separately. Each of the two types of bundles is assumed to establish a convex cone. The main part in the modelling is the introduction of production technologies which can be...

A large market economy has a huge number of degrees of freedom with weak micro-level coordination. The "implicit microfoundations" approach considers this property of micro-level interactions to more strongly determine macro-level outcomes compared to the precise details of individual choice...

A large market economy has a huge number of degrees of freedom with weak microlevel coordination. The 'implicit microfoundations' approach considers this property of micro-level interactions to more strongly determine macro-level outcomes compared to the precise details of individual choice...

A large market economy has a huge number of degrees of freedom with weak microlevel coordination. The 'implicit microfoundations' approach assumes this property of micro-level interactions more strongly conditions macro-level outcomes compared to the precise details of individual choice...

We propose a novel approach of model selection for probability estimates that can be applied in time evolving setting. The idea is that any discrepancy between different probability estimates opens a possibility to compare them by trading on a hypothetical betting market that trades...

Competitive behaviors such as outbidding one’s rivals may be countered by therivals’ threat of mutually destructive objections. In an Arrow-Debreu model of productioneconomies with firms privatized by property rights, we model such hinderedcompetitive behaviors as a coalition’s attempt to...