We consider an infinitely-repeated oligopoly in which at each period firms not only serve the spot market by either competing in prices or quantities but also have the opportunity to trade forward contracts. Contrary to the pro-competitive results of finite-horizon models, we find that the...

This survey covers the microeconomic theory of speculation in financial markets, since the development of the economics of uncertainty. It starts with a description of Walrasian exchange economies, both in general equilibrium –the Arrow-Debreu model and its extensions– and in partial...

In this paper we analyze a reputation-based mechanism that sustains the provision of high quality in a market for an experience good. In contrast to existing models of reputation, however, we consider a competitive market: there is a continuum of firms, each serving at most one consumer each...

During the last two centuries Chile had three official monetary units of account, where changes from one to the other can be seen as related to price level variations stretching over many years . For description and analysis this prolonged but also highly variable inflation environment will...

This paper develops a general equilibrium model of the real exchange rate for a small open economy, taking into account often overlooked characteristics of developing economies, such as the presence of significant aid flows, terms of trade variability, distorting trade taxes, and concentration...

Motivated by the structure of existing pollution permit markets, we study the equilibrium path that results from allocating an initial stock of storable permits to a large polluting agent and a competitive fringe. A large agent selling permits in the market exercises market power no differently...

Why does an altruistically inclined player behave altruistically in some contexts and egoistically or spitefully in others? This article provides an economic explanation to this question. The basic argument is centered on the idea that social norms shape our preferences through a process of...

Este artículo analizará diferentes explicaciones para el subdesarrollo del Continente a la luz de su historia económica de ese siglo. Estamos descontentos con nuestro estado económico actual. ¿En qué y por qué? ¿Por qué somos diferentes de los países industrializados? ¿Por qué somos...

The paper develops a general equilibrium model where population sources, such as fertility and mortality rates, are chosen variables. It is shown that the evolution of population over time depends on income and relative prices of mortality and fertility rates. Initially as a country develops,...