Revised 2008-08.-- Published as an article in: Journal of Public Economic Theory (2008), 10(4), 563-594.

This paper examines a marriage market with externality. We first develop an appropriate notion of stability for this market, called E-stability. We provide an example to show that an E-stable outcome need not exist. We then derive conditions under which an E-stable outcome exists.

We explore in this paper the consequences of status seeking preferences among agents contracting with a private principal in the context of production. We examine in particular the case of envy and we show that in general envy entails augmented distortions due to asymmetric information in...

This paper is a theoretical exercise aimed at developing an economic analysis of an education system in which the educational output - apart from each individual's propensity to invest in himself or the level of per-pupil spending - is heavily conditioned by the way non-monetary inputs (peer...