In this paper, we examine whether farsighted players form the efficient grand coalition structure in coalition formation games. We propose a stability concept for a coalition structure, called sequentially stability, when only bilateral mergers of two separate coalitions are feasible because of...

This paper analyzes a semicollusive, differentiated duopoly. Firms first compete in cost reducing R&D and then cooperate on the output market. The sharing of the joint profit on the output market is modeled as a Nash bargaining game. We study an asymmetric setting in which one firm has a lower...

This paper assesses the choice of different regulatory policy instruments for crisis managementand prevention. To this end a two-period, rational expectations, monetary general equilibrium modelwith commercial banks, collateral, securitization and default is contructed in order to explain...

Two financial structures are equivalent if, for each given state price, the images of their full payoff matrices of these financial structures are equal. The main consequence of this definition is that, regardless of the standard exchange economy ?, the existence of a financial equilibrium in an...

We consider a family of exchange economies where consumers have multiprior preferences representing their ambiguity aversion. Under a linear independence assumption, we prove that regular economies are generic. Regular economies exhibit enjoyable properties: odd finite number of equilibrium...

We consider a stochastic financial exchange economy with a finite date-event tree representing time and uncertainty and a financial structure with possibly long-term assets. We exhibit a sufficient condition under which the set of marketable payoffs depends continuously on the arbitrage free...

Studies routinely document that immigrant employment concentrates in non-traded goods sectors and that many immigrants have low inter-sectoral mobility. We consider these observed characteristics of immigrant employment with regard to the question of how immigration affects a nation's pattern of...

The paper argues that, from a dynamic efficiency perspective, intersections of factor price frontiers are irrelevant to the choice of techniques. Because every change in technique involves a temporary loss or gain in both profit and per capita consumption within the transition period, its...

We construct a general equilibrium model with a protected intermediate sector and analyze the effectiveness of trade reform for a small open economy where bureaucratic corruption arises because of trade protection. Intermediaries are employed by the producers in order to avoid paying the import...

In this note, we present a wealth model of a two-country economy where ffnancial assets and goods are traded. We consider the case where the agents are risk neutral, a very common assumption in ffnance in order to have explicit solutions for prices, and in particular in international ffnance for...