A large portion of school and college places in the world are allocated through centralized admissions schemes. In this paper, we study a model of centralized admissions with the feature that schools are allowed to pre-commit to admitting qualified applicants who rank them as top choice over...

We present a framework of group cooperation and competition in which agents are concerned not only about their material payoffs but also about their psychological payoffs, derived from working with others per se. In such a framework, a group's psychological preferences serve to enhance the...

We present a framework of group cooperation and competition in which agents are concerned not only about their material payoffs but also about their psychological payoffs, derived from working with others per se. We show a material foundation to such psychology – the stronger a group's...

Both empirical and theoretical studies suggest that currency attacks can occur even in a fixed exchange rate regime with sound fundamentals. Can mechanisms be designed to prevent such currency attacks? To address this question, we first need a theory of currency crisis. I argue that such a...

The paper studies agents’ investment decisions between general and speci…c in-vestments under di¤erent ownership structures in a thin, decentralized market where each agent’s decision a¤ects the decisions and welfare of other (otherwise unrelated) agents mainly through indirect market...

The paper studies agents' investment decisions between general and specific investments under different ownership structures in a thin, decentralized market where each agent's decision affects the decisions and welfare of other (otherwise unrelated) agents mainly through indirect market...