This paper presents a model of Downsian political competition in which voters are imperfectly informed about economic fundamentals. In this setting, parties' choices of platforms influence voters' behavior not only through voters' preferences over policies, but also through formation of their...

In two-sided matching problems, we formulate (i) a concept of equity of matchings based on envy minimization, and (ii) a solidarity property of matching rules under "natural" and "simple" changes of preferences which represent enhancement of partnership of the pairs. We show that there exists no...

The assumption of the complete market simplifies the whole theory of arbitrage pricing theory since the pioneering work of Black and Scholes. The martingale approach is one of the most powerful tool for pricing derivative securities in the complete market. The existence of such a market,...

We investigate the equilibrium selection problem in n-person binary coordination games by means of adaptive play with mistakes (Young 1993). The size and the depth of a particular type of basins of attraction are found to be the main factors in determining the selection outcome. The main result...

It is widely known that emissions of greenhouse gases from anthropogenic activities have been dramatically increasing at the unprecedented rate over the past several decades, and causing the global climate change. To assess the future trends of such global climate change, it is necessary to...

We examine the strategic use of recycled content standards (RCSs) under international duopoly. RCSs require firms supplying the domestic market to use a certain proportion of recycled materials as inputs. We demonstrate that, when there is no trade in recycled materials, two identical countries...

We discuss the problem of exponential hedging in the presence of model uncertainty expressed by a set of probability measures. This is a robust utility maximization problem with a contingent claim. We first consider the dual problem which is the minimization of penalized relative entropy over a...

This paper, using nationally representative household surveys, examines the changes in the membership structure of the Communist Party of China (CPC) during the 1990s. We concentrate on urban China and investigate how socioeconomic characteristics of the region (city) influence the membership...

This paper examines the effects of a movement from segmented markets to integrated markets on the volume of trade, consumer prices, and profits in a monopoly model. The monopolist discriminates prices among segmented markets but takes account of arbitrage under integrated markets. The analysis...

The usual Wald test for the Granger non-causality in cointegrated vector autoregressive (VAR) processes is known to have the asymptotically non-standard distribution. There have been proposed a few alternative (inefficient) methods which give the asymptotically standard distribution. However,...